Who did he want actually? I read he wants Halland, Pogba, etc in the past[1]. If that is true I think that's really too demanding considering their financial situation. He should give a list of alternatives if he really wants to play with a system that needs them. He seems to know about this though, which is why he probably uses young players or agrees on free transfers so that the club can fix their situation first[2]. Other reports suggest he is looking for a "10" or more defenders hence why they signed another defender on free transfer[3]. Looking at this situation, I think the management can't do much until a few years later after their financial situation stabilizes and the fans need to be more patient. I'd say another proper season is probably the last gamble they can take with Xavi as long as they can get quality players.

They managed to score only 2 goals in their last 2 matches[4]. I don't watch most of their game but some pundits that I follow stated that Bayern doesn't play as well as last season. Would you agree with that assessment? Their title race with Leverkusen is definitely a good motivation to get back into form and play their best in the Champions League just in case they fail to win the league. That sounds really weird to say, but I'd argue their fans would be more than happy to win the UCL if it means losing the Bundesliga.

[1] https://www.sportskeeda.com/football/rumor-xavi-draws-star-studded-4-man-transfer-shortlist-ahead-barcelona-arrival-reports
[2] https://www.90min.com/posts/xavi-makes-barcelona-transfer-window-demand
[3] https://onefootball.com/id/berita/xavi-requested-the-signing-of-veteran-defender-to-play-with-an-alternative-3-4-3-formation-37649806
[4] https://fbref.com/en/squads/054efa67/2023-2024/matchlogs/c20/schedule/Bayern-Munich-Scores-and-Fixtures-Bundesliga