I really do think it's just his head. Losing begets losing and lack of accountability means the behavior won't change. That's why he should be benched for a few games and made to work on fundamentals.
In my job, if I have a sales manager under me start dropping off badly, there are times I'll reassign his people and take him off important accounts. His commission drops, he has to do more teaching on new guys, and yeah, he feels a bit punished. How he responds to that tells me a lot about the person, if he starts to whine about not having the right tools or complains about increased workload, I know he's not going to cut it. If he knuckles down and tries to do the best with his resources I know he's someone I can train and make better, even if I have to fit him in somewhere else in the company.
That's why you bench him. See how he responds. Let him watch a few games from the sidelines. If he doubles down on his work, accepts teaching, is humble, he's good to go. If not, well, there's the trade block if someone wants his contract.
It also strengthens MM's position. I don't think he has the team yet, and making their overpaid star RB sit sends a message that if you don't perform, someone else will get the chance.