Yes, the amount of salary demanded by Pogba makes Real Madrid abandon its intention to recruit Pogba, and there is news that Real Madrid is now turning their attention to Ryan Gravenberch.
If Real Madrid is no longer interested in Pogba, then there is a possibility that Pogba will join PSG, but it seems that Man United is also offering a contract extension with a very high salary value. So there is also a possibility that Pogba will stay at Manchester United.
I can assume that Pogba's location will depend on whether Real Madrid can conclude a contract with Mbappe and Haaland at the same time. If yes, then this opens the door to PSG, if not, then Pogba will be a good replacement for Modric, who, in any case, will not be able to play in Real for more than one or two seasons.