The brown needles indicate dehydration. Dehydration can be caused by lack of water or, paradoxically, too much water. Too much water can cause root rot. Then the roots cannot take up water even though the soil is soggy. Looking at the soil I doubt this is the problem. More likely to be lack of water for several reasons.
Tree was slip potted. This means a compact root ball is now surrounded by very different media. It is difficult for water to cross the boundary. Most water runs through the new, well draining media and out of the pot and very little soaks through into the root bound old soil. Roots also have difficulty crossing from one soil type to another so they are likely still confined to the old root ball and cannot access the new soil and moisture. As a result the old root ball gets drier each day despite your best watering attempts. Compact root ball MUST be teased out a bit when slip potting to allow the new and old soils to mix a little and to encourage roots to go out into new soil.
You have not include a location so it is difficult to guess what season you are in or what conditions the tree has endured recently but mid July summer comment indicates northern hemisphere somewhere. Comments from other growers in North America indicate this summer has ben particularly hot and dry, making dehydration more likely.
Check soil moisture of the inner, old soil (down below surface level) If necessary soak the entire pot for a few hours to rehydrate the inner root ball. You may need to repeat every week or 2 until spring when you can rectify the problem.
Deformed needles happens occasionally. Subsequent growth usually returns to normal. It is unlikely to be fatal. Your location will give other members in your area vital info about what pests and diseases could be causing this.
