I think the simple answer is to sell out and shove it all into an index and be done with share picking.
But I think it can also depend on what you bought. Are any of the shares you have reasonably high yielding, relatively stable, blue chip-ish stocks? If so, they may fluctuate for a bit, but they could be worth hanging onto for the yield. And if they are blue chips chances are the index funds will hold some of it.
But that doesn't much for diversification and it doesn't sound like they are terribly good performers either.
I think the tricky thing about realising the capital loss is it can hang around for a while, doing nothing. And they don't unfortunately allow you to index the size of that loss to keep up with inflation, so the 'value' of that loss diminishes over time. For example, I sold out of some speculative shares in 2003. I was completely out of shares for a long period so it took me to 2015 to make some profits to offset them against!
Good on you for contemplating cutting your losses tho and building up from a solid foundation. Takes some of us (i.e., me) decades to realise this.