My summary of Marx is accurate. In his view, working conditions and pay would get monotonically worse. That objectively has not happened.
Marx was clear that capitalism produces booms and busts, which implies non-monotonic development. He did predict that, when left on its own devices, capitalism will in the long term collapse on itself due to the tendency of the rate of profit to fall.
Collapses where huge governmental intervention in economy is needed happen quite consistently. E.g. in the USA the market mechanism collapsed in 1893, 1929 and 2008. And it is arguably still on central banks' life support.
What Marx and revolutionary marxism was maybe a bit too sceptical of was sustainability of social democratic states, known also as mixed economies. Altough it does seem that most mixed economies (e.g. the nordic countries) are regressing towards more capitalist domination.
Capitalism and socialism aren't some specific systems and no country is 100% either. Even USSR didn't say in its dogma that it has achieved full socialism, let alone communism.
A) In the class struggle the workers conquer more rights using strikes, organizing themselves, etc. There are several pages in Marx's writing detailing this happening.
B) Like any other commodity, the labor force could became more expensive, entirely following capitalist rules. This would be the case if the price of food increases: you cannot pay for your workers less than the needed for their subsistence in a sustainable model, which means that increases in the living price requires more wages. But this also could happen in other scenarios, like if the society becomes more complex. If now the workers need more things to properly function just because the society is more complex and they require more things in order to produce more complex labor. Then they would get more wages to buy their computers, TVs, pay for education, etc. As a bonus, now these things can also be sold, helping capital to reproduce itself. Marx says that what the workers need in order to produce their own livelihood, the standard of living of their day, is socially and historically determined. This is not a fixed thing.
What Marx says is not that wages cannot improve in capitalism, but that the surplus value would always increase (except for changes caused by scenario A). Which was a perfectly correct prediction: if you check how worker productivity increased over time and how wages increased, you would notice that there is a gap that is always increasing. Moreover, the workers also could not own the relevant means of production: they always would need to sell their labor force.