Armstrong and his former team were accused of running "the most sophisticated, professionalised and successful doping programme the sport has ever seen" in a report released by the United States Anti-Doping Agency on Wednesday.
"It is shocking, it's jaw-dropping and it is very unpleasant, it's not very palatable and anybody who says it is would be lying wouldn't they?" Brailsford, who is also the boss of Team Sky, told Sky Sports News.
"You can see how the sport got lost in itself and got more and more extreme because it seemed to be systematic and everybody seemed to be doing it at the time - it completely and utterly lost its way and I think it lost its moral compass.
"Everybody has recalibrated and several teams like ourselves are hellbent on doing it the right way and doing it clean."
Canadian Michael Barry, who rode with Team Sky for two years until earlier this season, admitted to taking performance-enhancing drugs during his time with the USPS team between 2002 to 2006.