First off, Foxy's reactions seems to be light years ahead of yours, combined that to the fact that this MU is getting into you, you just froze most of the time.
Scorpion teleport is fast enought to at least grant you a throw everytime Lao throws a low hat fullscreen, you let foxy throw a lot of low hat freely which was helping him building up his offense from fullscreen giving the fact that you were unable to match your reads with low hats.
Scorpion teleport its not solely used for counters, but it can also be used for escaping, you can from time to time, telecancel in between frame traps to escape, in most cases if they're mashing you will mostly likely to get a throw, or you could mix with flame aura, which would make them respect your defense more between frame traps.
Foxy has a strong read to punish jump ins, so the hat pressure is to force you to come into that are so he can be ready to you with Armored AAs, Scorpion has a strong air to air game, you should mostly be jumping only when they jump at you, considering how good foxy is at using this.
You're not poking enough, standing 1 is one of your best pokes, because is +1 on block, in many situations it would be advisable to use that instead of D4, so you can check them with D4 afterwards or bait a special or jump in, you can still be low profiled in some cases though.
When you check someone with D4, don't just charge in, foxy donwloaded this and was escaping by jumping, Flame aura is your best friends, low hat isn't exactly plus so why in many cases midscreen you just didn't backdash or tele canceled to get a throw in the oposite side or check them with a D4 in case they try to react on sight.
On the first matches, Foxy whiffed some Jump ins, any jump in from this game can be whiff punished on landing, you can ask Foxy yourself since he did this exact thing to you on the first match, and occassionally checked you with 11 in similar situations where you whiffed a jump in punch.
This is still one of the most informative videos i've ever did, but no one pay much atention to this:
pressuring with FBC to get damage is a suicidal tactic, it will only get you to spend stamina and a bar of meter, and in some cases getting punished at cost of trying to close space with FBC blockstrings.
There were situations where you got B32F2 to hit, if i were you, i would B3~FBC~114, the B3 and F3 are just for checking in this variation, unless you're unsure of yourself, if not, you can hit confirm B3~FB~backdash if they block, or B3~FBC~114 if it hits, i felt those were lacking
The rest is Yomi, guessing between pressure and spin is part of KL game, you just have to get inside your opponent's head to figure that stuff out, but since you can teleport out of pressure, this can keep him also in check.
There is also the fact that you're playing online, so some scorpion features are better used when your on a offline match, so i will give you that considering you couldn't hit links of flame aura online