Conked out clutching bottle? That’s sad (10)
I believe the answer is:
dispirited
'sad' is the definition.
(thesaurus)
'conked out clutching bottle?' is the wordplay.
'conked out' becomes 'died' ('die' can be a synonym of 'conk out').
'clutching' means one lot of letters goes inside another.
'bottle?' becomes 'spirit' (I've seen this before**).
'died' going around 'spirit' is 'DISPIRITED'.
'that's' acts as a link.
(Other definitions for dispirited that I've seen before include "low" , "Dejected, discouraged" .)