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The horror show has exposed the Men in Blue's inability to come good in pressure games in multi-nation tournaments.
Sri Lanka posted a 6-wicket win in the final over to upset the favourites.
Pakistan's five-wicket victory came with just one ball to spare.
There would be a bigger picture also and that is to set the core combination for the T20 World Cup in Australia in order by the end of this tournament.
Notable names dropped from the main squad include batter Shreyas Iyer and left-arm spinner Axar Patel.
In a rain-affected final ODI, India scored 225 for 3 in 36 overs, courtesy Gill's career-best knock of 98 and another half-century from skipper Shikhar Dhawan.
Upton has been roped in on a short term contract and will be the latest addition to coach Rahul Dravid's team of support staff.
Axar Patel smashed a whirlwind unbeaten 35-ball 64, his maiden ODI fifty, as India scripted a sensational series-clinching two-wicket win over the West Indies in the second game.
India were set for a 350-plus score but Dhawan's dismissal for the seventh time in the 90s led to a middle-order collapse with the visitors reduced to 252 for five from 213 for one.
Rahul is likely to miss the T20I series against the West Indies.