Is that losing by default, or is that just losing the fight?
Yes, he was losing the fight, but he wasn't losing because Pickett was outfighting him or anything. He was losing because he lost on two specific big moments (a flash knockdown and a takedown) that swayed the balance on two very competitive rounds.
Vera threw a s**t ton of a variety of strikes that Pickett had a lot of trouble handling on the feet. Consistent offensive influx of elbows, leg kicks, body kicks, head kicks, jab, straights. By the end of the 2nd round, Pickett was already brain-fried by the striking variety of Vera and had zero answer on the 3rd round.