This is a quick-hitter because I’m a busy dude, but this is one area where Michigan is struggling. What is their identity in short yardage?
When any 5-man run scheme is involved, you’re outnumbered in the run game up front. Michigan can block 5 with the line and read another with the QB, but bringing a 7th guy into the box makes Michigan vulnerable to the SAM linebacker here bending off the edge unblocked. Unless Shea Patterson throws the ball quickly to the X receiver or gets it out to the trips side with a bubble or key screen, Michigan is going to struggle mightily to run the ball in this type of set against an aggressive defense.
A couple simple fixes with formations:
Sorry I don’t have time to explain more thoroughly. There are other things you can do (obviously), but I happened to have my play design software pulled up and threw these together.