By mid 1942 Italian ship after ship was going down. Rommel didn't know why and every time he would call the Italian Navy and they would tell him a new ship was going out to supply the troops it seemed to quickly be sunk. According to his son he suspected the British bribed someone in the Italian Navy, but as it turns out the codes he and the Italians were using had been broken.
I've read somewhere that Wallies never broke Italian naval codes. However Germans forced Italians to use Enigma, with predictable results.
There is honestly no way short of Rommel taking the port of Alexandria that he could have held out until 1944 and made North Africa a much more difficult war for the Western Allies and he was aware that the Americans were in the war after December 1941 and would be likely landing to his West.
That's true and I don't think there was any way Germans could win. Different general might help but would be faced with same problems Rommel was. Different general might take more realistic look at his capabilities and reach better conclusions but in the long term standing on defensive or limited offensives from start wouldn't change end result.