The 23-year-old world number 38 was beaten 4-6 6-4 6-3 by American qualifier Bradley Klahn, ranked 104. "I think with Nick when he's fresh he plays great and it's about managing schedules as much as anything", Woodbridge said.
"You know exactly what I meant, Nick".
During the second set, Dumusois was overheard telling Kyrgios a point in the second set was "really borderline".
"I want to help you", chair umpire Mohamed Lahyani told Kyrgios, who went on to capture 19 of the next 25 games and set up a clash against Federer in NY.
Only through understanding work ethic and scheduling, creating the right team around himself, only then can you unlock the potential really..
The Kyrgios fuse was blown when the umpire issued a soft warning early in the second set for his lack of effort.
Three games later, Kyrgios smashed an ace and turned to Dumusois to ask "was that borderline poor?" before the French official told him "that's enough. You have no right to tell me that it's poor".
He later cautioned the umpire: "You know I literally could just go to the ATP office after this and say I just felt put down from your comment and you'd be in trouble, right?"
"It hasn't been the year he'd like and I think next year it's about a focus on slams and actually performing and going deep in those", he said.
Shanghai is not the only scene of a Kyrgios controversy.
Last year, he was fined after he stormed off mid-way through his first-round match, with jeers and boos ringing in his ears from the crowd.
Deposed this week as Australian No 1 by Alex de Minaur, Kyrgios argued with umpire Damien Dumusois after the Frenchman questioned Kyrgios' effort.
This most recent Shanghai meltdown comes after Swedish umpire Mohamed Lahyani was suspended for giving the Aussie a mid-match pep talk in his second-round US Open win.