Italy still has a big chance, they still have one match to play Italy has collected 4 points while Ukraine has 7 points and in the upcoming match the two teams will fight each other if Italy win then both teams have the same points. Overall Italy still has 5 matches ahead with a potential of 15 points while Ukraine only has 4 matches left with a potential of 12 points.
I don't disagree with you or anyone else who thinks Italy are favorites and will qualify
But stronger teams can't afford to lose games like that because they could get into trouble in the future, just look at the case of the World Cup itself and North Macedonia
Ukraine got a good result against England, and imagine a scenario in which Ukraine gets a draw against Italy, that could complicate the situation in the group and make second place very dramatic
Remembering that Macedonia will play against Malta, and could get all three points, making things even more complicated in the group
Only England seem to be at a much higher level at the moment in this group
But don't worry hehe, according to the odds, Italy have 63% of probability to win