Q.Why Is My Plant Withered Looking?
I received this plant from my grandpa after my grandma passed away last year. Originally it was dusty and slightly withered looking. After an initial soil change it perked up a lot and the leaves had plumped to where it actually appeared happy and healthy. Within the past few months I’ve noticed it start to revert back to how it appeared when I first received it. The root system has, since I had the plant in my care, always had a 2-3″ root cluster under it. I should also mention that l’ve recently had an uptick in the press of fungus gnats and narrowed it down to this plant being the issue. Upon further review after knocking off all the loose soil and pruning off a few ultra withered leaves this is what I’m currently working with. I’ve also got a large bag of Christmas Cactus soil from repotme coming in on Thursday. I plan on repotting, but other than that what can I do besides propagating?

Certified GKH Gardening Expert
I see an indication that the soil was left too wet. Those roots have rotted off. I still see signs of fungal mycelium, as well. This grow up trees between the bark of large trees, so standard potting soil makes it much easier to overwater and kill them. They need consistent moisture, but not wet. The growing medium needs to be loose and allow air through to replicate the bark of a tree. Christmas cactus soil will fit the bill.
From here, I would take a few cuttings. They root without trying most of the time. This is in case the mother dies. Repot the original in your new medium and only water once it is almost completely dry. They do prefer consistent moisture, but they do better drier, than too wet.
Now, the part that isn't going to feel too great- Now you have to cut the good majority of the top off of the plant. The growth is wilting because the small root system cannot sustain it. It will only be able to sustain plant matter above ground that is about the size of the rootball or slightly bigger. Just cut off any wilted growth for now. If it continues to wilt, keep that growth cut. Eventually you will see new growth as the roots start to heal.
Treat with a fungicide to kill off any remaining infection.
This article will help:
https://www.gardeningknowhow.com/ornamental/cacti-succulents/christmas-cactus