"Does evolution have intelligence?"
No, why should it have to?
"Do not the physical laws say that every thing is breaking down on evolving?"
No.
If evolution is not intelligent where are all the mutants so to say? There has to be a whole bunch of them that did not work out if evolution has no end game so to say. As far as every thing breaking down, take a dead chicken and let it lay in your front room far a few days and you'll notice it's not getting up and jumping around its breaking down (stinks). Show me in the world where it is not breaking down but evolving into a better system.