A no from one audition panel is one opinion on one day. Book the next audition.

A panel is a few people on one afternoon with a particular set of needs, and their decision describes the overlap between you and that, not your ceiling. They might have been casting for height, or for a voice type, or half-decided before you walked in. None of that is visible from where you stand, which is why it is tempting to fill the gap with a conclusion about yourself.

The useful response is also the simplest one: find the next audition and put your name down before the feeling settles. Ask for notes if they are offered, and keep only the parts that are specific.