The Yorkshireman was sacked by the Black Country club last February following a 5-1 home humiliation to Black Country neighbours West Brom, a result which saw them drop into the relegation zone in the Premier League with 13 matches of the season remaining.
Interim boss Terry Connor was ultimately unable to prevent relegation to the Championship, that led to the summer appointment of Stale Solbakken who struggled to have the desired impact and was duly sacked himself in January of this year, resulting in Dean Saunders taking the reins - Wolves' fourth different manager in less than 12 months.
But Saunders has himself failed to stop the rot and, heading into the final day of the season this weekend, second-bottom Wanderers are staring at life in the third tier of English football for the first time since 1989.
McCarthy, ironically, has completed a remarkable turnaround at Ipswich having steered the Suffolk club from the foot of the Championship table when he took over in November to a place in the top half of the table.
When asked if Wolves would have been in their sorry position if he had still been in charge, McCarthy replied: "Not a chance. Nowhere near it. They'd have been at least in the play-offs."
Speaking after Ipswich's 3-1 win over Birmingham on Saturday, McCarthy added: "I had such a good time there. I loved it.
"It got cut short and we all know the reasons why, but I feel so sorry for the people there. There are people there who have been there for years and there are families that work in the club. They're lovely, lovely people and I went to see every one of them when I left.
"I'd got to know them all and I feel desperately sorry for them, because there will be major changes if they get relegated.
"They shouldn't be anywhere near it (relegation). Not a chance - not with the players they've got."