In terms of players, it seems that for left-backs until now it is enough because Fran Garcia and Mendy, even though their age is still young but they have quite a lot of experience, besides that there is also Camavinga who is ready to be positioned there if there are obstacles to this player, it's just that maybe in this case Madrid wants to make Davies a target because from the previous few seasons Mendy's rumors of leaving Madrid have always surfaced so they started trying to anticipate this.
As for the right-back, their two pillars, Vazques and Carvajal, are both 32 years old. Even though it is old age, they are still very capable of being there and instead of focusing on the 2 wing-backs I think it would be better for them to focus on the center-back. Even though until now their players are qualified there because they are filled with Rudiger, Militao and Alaba but when injury problems occur like what is happening now, it becomes a problem for them even though there are Nacho and Tchouameni who can still cover but in the end getting players who fit their position will be much better.
But if Real Madrid would be successful in signing Davies, it would be an unbelievable left side for Real Madrid. Just combine the pace of Vinicius Junior and Davies. That would probably be the fastest duo in football. I assume that this is the idea, to add some extra pace to the left side although they are good already. But Davies is well positioned with his contract ending in 2025. It would be the only possibility for Bayern Munich to make some money if they decide to transfer him to Real Madrid. And Davies knows that Bayern Munich would have to raise his salary or else he would let his contract expire and leave the club in 2025.