Paul Gallagher netted just 39 seconds into the match at The Molineux to earn Plymouth their first away win since November, as Wolves saw their dismal run stretch to just one victory in 11 games.
"We were hopeless," McCarthy said after the 1-0 defeat.
"Let's cut to the quick, the way we played we were hopeless, dreadful.
"We didn't deserve anything from the game.
"That performance is well below the standards we expect and I'm not blaming the players because that performance is my responsibility.
"We gave them a goal, let them sit back and we didn't play well.
"We didn't deserve to win - Plymouth did."