There are so many things going on with them right now.
Losing Durant, first to injury and then to free agency, was the biggest hit. But then also losing Klay just compounded that (we're seeing just how valuable his defensive ability was). D'Lo is a talent, but he is a terrible fit here and is a much worse defender than a healthy Klay.
On top of all of that their bench has seriously decayed over the last 5 years. The Warriors used to be a deep team. Even when they had to let some of their depth go for Durant they still had a few good bench guys that gave them a great 8 man roster.
Curry, Green, Russell is a fair amount of talent, but the rest of the roster is utter trash. And D'Lo doesn't really fit. They need to trade him but the value they get may not be great. This is a year when they might as well just low key tank for a lottery pick, although judging by the early returns, it may not require tanking at all.