Well, the retaining thing was more because of the change in number of teams than anything else imo.
They did indeed lose to Kyiv, some Andriy guy put 3 goals on them (two at the Bernabeu), and then Kyiv lost vs Bayern 3-4 in the aggregated, Real got eliminated by Bayern (winners) the other season, really not a lot of shame in those runs.
The problem that team had is that they ended 4th, 2nd (11 points behind Barcelona), 5th and 3rd behind Valencia and Deportivo in those seasons, almost the same hex that this squad carry, with only one league title, ending 3rd in 14' and their current league form.