After two impressive wins in the previous knockout stages, up against Senegal and co-hosts USA, Garcia's team were edged out late on as Mikel Merino scored another winner off the bench for La Roja.
Merino's chance to fire home from close range was gifted to the Arsenal midfielder after Senne Lammens fumbled Pau Cubarsi's strike with the Manchester United stopper introduced late on following an injury to Thibaut Courtois.
Courtois was taken off after suffering a hip strain when making a clearance, and despite his best efforts to stay on thee field, Garcia made the call to throw on Lammens as his replacement.
Real Madrid's No.1 admitted after the game his intention was to stay on and test the injury, but Garcia decided he was not 100%, and the veteran keeper accepted the substitution.
The 34-year-old was also asked about the possibility of a second international retirement - after being brought back into the fold by Garcia in March 2025 following a dispute with former boss Domenico Tedesco - and Courtois has a bold plan in place for the next 12 months.
"I want to rest for a year without any Belgium matches, and then play the Euro qualifiers and potentially Euro 2028. I don't know if Belgium will agree to this."
Belgium are next in action in the Nations League in September, with a double header against Italy and France, with qualification for Euro 2028 due to start in March 2027.