I'm sure of this too. It’s hard not to notice that, given the presence of such players as Kolo Muani, Ramouche and Dembele in the team besides Mbappe, there is some “crowding” among the forwards. Apparently PSG hoped until the very end that Real would make an offer that would suit PSG and Mbappe would go to Real this summer, but Real have been strictly rational for many years and they decided to get Mbappe for free, even a year later.
Deciding to wait for Mbappe to be free is difficult now because by extending Mbappe's contract for 1 season indirectly this makes PSG still comfortable with selling Mbappe at a fairly high price.
Now indeed the decision is in Madrid whether they want or not to spend money on Mbappe especially I think for now they (Madrid) can be more comfortable to negotiate because Mbappe will definitely be sold in the summer because PSG has no choice now apart from selling Mbappe because the way of coercion they cannot do for a player of Mbappe's calibre.
The option to extend the contract for a year depends on Mbappe and he has not activated it. PSG can literally do nothing in this situation. Mbappe will leave for free in the summer and I don’t see what can be discussed here. Taking into account the fact that he returned the loyalty bonus to PSG (a gesture of goodwill), it can be assumed that the parties reached a peace agreement and Mbappe will simply finish this season and leave.