no, they (the citizens) know they're losing right now. They know, believe me they know.
Putin wouldn't be able to fabricate such a lie. However, what drives the Russians right now in their war to win is they genuinely think everything they've suffered, from the lives to Russia regressing into an almost third world country, is because the West is out to destroy them. They think if they surrender now, then they will have truly lost everything.
So that's why they must keep going from their POV. They think if they win in Ukraine, they will be normalcy in their lives again: you know, Mcdonalds, social media, etc.