The Old Covenant has passed away.
Jesus is alluding to the fact that the Old Man is not salvageable, that a New Man is required to receive the Gospel and His Holy Spirit.
Jesus was illustrating how that we must be new bottles to receive the new wine. The New Birth precedes Spirit Baptism.
However, some believers then and now still hang on to performance aspects of the law as requirements for Spirit Salvation. This is error.
Forgiveness of sins is a done deal Heb 8:12. Eternal Life in the New Birth comes by faith in Christ Jesus Rom 6:23. We then walk by faith in the Word so that we experience Abundant Life Joh 7:38.
Salvation is two-part: Spirit Salvation and Soul Salvation. → Spirit Salvation is instantaneous through faith In Christ Jesus. → Soul Salvation will occur at the return of Christ when we are translated.
The New Covenant is good news. It is the Gospel of Grace.