I wouldn't panic, most all of this is still a remote possibility. That having been said, there are worrying similarities to the conditions that caused WWI. We all know that at least part of the cause were the treaties that caused significant and quick escalation (it's obviously more complex than that). For example, right now if the Iranians were to intervene against Azerbaijan, it's a potential powder keg. If the Israeli's decide to get involved, and wind up getting attacked, presumably we are in it with them against Iran. At this point, does an opportunistic China make a move at Taiwan? Under this scenario, the US would be tied up with Iran and China and the same time; thus leaving the door open for others to attempt to settle old scores, etc.
What we need is for the temperature to be dialed down, and the best way I can think to do it is to have the Ukrainians win, and the sooner the better. If suddenly the Russian military, even regrouping and licking it wounds were withdrawn from Ukraine, it would likely be enough of a deterrent to prevent Azerbaijan from attacking, much less potentially engaging in an all out war. Generally speaking, when people see attacking as the worst option, typically more peaceful means are far more attractive. Given that war is generally a losing proposition for everyone, and mostly outright lunacy, even crappy peace agreements are a better option. Hopefully over time, crappy peace agreements get massaged and become more equitable for all. Truth be told, there is value to be had with two sides constantly working together and compromising on constantly improving treaties.
Just to be clear, I'm not saying Azerbaijan isn't rightfully aggrieved, to completely honest, this conflict is one I only have limited knowledge on. What I am saying, is that there are better ways to solve our collective problems. The chaos unleashed by the Russians and their invasion of Ukraine has upped the global temperature dramatically, and in my opinion, one of the best ways for the temperature to go down is for them to be defeated.