The priority for Real Madrid right now is the need for Strikers. After Benzema's departure from the team, they still could not transfer a quality name to this region. They do not have big problems in defense, but of course, they may want to transfer to the defense. I think they should devote the budget to striker transfers instead. Joselu can be a good backup striker and needs a star striker.
It's not possible for real madrid to do that for now. I read news that said if there was a rumor madrid will start to talk with PSG about mbappe but this seems to be a rumor only. I see no concrete news related to the development of this rumor. From what i can see that if real madrid is now hunting a new striker even vlahovic has become one of the candidates mentioned by real madrid. The problem is now if the club may not even try to spend another huge money to buy a single player. Madrid has bought bellingham with a lot of money and madrid will not do that again.
It's caused by the club needs to make sure if its financial will always be stable. Madrid has a lot of debt. The club needs to use its budget efficiently to avoid the same fate as barcelona.
Yes the same thing I see from the rumors circulating about the Frenchman, there are rumors that Real Madrid are still undergoing negotiations to ensure Mbappe is in their squad this season, but just like you I have not seen any definite steps made by Real Madrid. Indeed, we recently heard Paris Siant Germain open up about Mbappe, stating that if the player won't agree to a contract extension then they will sell him before his contract expires. I think Mbappe is now the big drama in the summer transfer window.
El Real are still in need of a more capable forward, and their current one (Joselu) is doubtful to fill the void left by Benzema.