Jon isn't washed. He just easily beat Gane who despite clearly having some huge flaws and weaknesses in his game, is still a legit top 5 HW.
Stipe might not even be washed, but he is going to be 42, coming off a bad KO loss 3 years ago, and hasn't won a fight in 4 years. So very likely washed, but we'll see. Still clearly years beyond his best.
The main issue is that the fight is meaningless, nobody cares about it, and Stipe might be the worst title challenger in the modern era of MMA. We've had guys getting title fights off of losses before (Gus, Chael etc) but coming off a KO loss and 3 year hiatus is a new low.