Of course, Real Madrid will always prioritize to sign a new top striker as long they don't get a proper replacement for Benzema. Mbappe and Osimhen are the main target for Real Madrid, they probably won't stop if they don't sign one of the strikers. Regarding Joselu, I don't think he played too badly, he played quite well. He proved that he could score some goals so far. Although he rarely played as a starter, he still could contribute by scoring few goals. However, it is true that Joselu isn't a proper striker that Real Madrid expects. Joselu still wasted many shot attempts in many matches, specifically in the big matches. Anyway, I don't think Real Madrid attacking line is worse, they are strong enough. If they are worse, Real Madrid won't be in the top of La Liga table and played almost perfectly in UCL.
Davies transfer will be good for Real Madrid. He will strengthen Real Madrid defense. However, I don't think it is an urgent thing, Real Madrid has good number of defenders.
Real Madrid has always been linked with Mbappe and Osimhen but in reality Real Madrid has not given any indication that Real Madrid management will make an offer for these two players in this transfer window. I don't think Ancelotti will take a big gamble to recruit Osimhen because Osimhen performance has declined relatively this season, which could be a big blunder if Real Madrid recruit him. Even without a suitable replacement for the position left by Benzema, it seems that gap can be covered well by Ancelotti this season.
It is true that Real Madrid are looking for a goal machine for their center forward this season but I don't think they will be in a rush to target a quality striker this season. If we look at Real Madrid, they are almost transitioning their squad from old players to young players, so there is a reference that Real Madrid management will look for young talented strikers to prioritize in the long term.