By evolution I mean change towards more sophisticated states of being.
Entropy decreases in lifeforms and increases in the universe. The former process helps to accelerate the universal rise of entropy, so is entirely consistent with the universe.
In the end, according to our current understanding, yes, entropy rises until it consumes all energy, and no more life is possible, but that is many trillions of years in the future, and until that time, the nature of the universe is to create ever more sophisticated life.