Your 9-foot holly with blue berries is almost certainly Oregon grape holly (Mahonia aquifolium), not a true holly (Ilex). True hollies have red/orange berries; Oregon grape produces blue-black fruit.
Water stress. The berries shrivel and drop when the plant lacks consistent moisture, especially during summer heat. This is a survival mechanism—the plant sacrifices fruit to preserve foliage and roots.
Consistent deep watering now should stop further berry drop. The remaining fruit will mature and provide winter wildlife value.
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