I think the main reason was the bad relationship between Laporta and Xavi otherwise he could stay for the next season.
Even Flick was not successful recently and they could have much better coaches instead of him
Xavi was expected to be kicked from Barcelona at any moment especially that few weeks ago he was declared out then resumed... Their might be some misunderstanding and tensions between him and the staff but that was mainly due to the poor results they had and for not winning anything this season.
Yes, maybe they had internal problems which ultimately made the relationship between them not good, so that in the end Xavi had to be the one who was kicked out because of the bad relationship. In fact, if we look at Barcelona's performance, he should still be worthy of being given the opportunity to become coach next season. However, news circulating that there has been an agreement between Barcelona and Flick confirms that Xavi will no longer be part of Barcelona next season.
However, I think Xavi will soon find a new team, because his performance is not bad and even shows something that I think is quite promising. So maybe it won't take long for him to get a new team.
You're right regarding Barcelona's issues causing Xavi's departure. He was clearly not supported financially by management, especially Laporta. That conflict hinders a coach's ability to construct a squad his way, which is crucial for long-term success. The addition of Flick is a departure. Xavi has great potential. He's smart, game-savvy, and visionary. Where he lands next will be intriguing. I hope he finds a club that suits him and supports him. That may make Barcelona regret their choice. Coaching goes beyond tactics and formations. Ego management, boardroom management, and winning culture are key. All of that describes Xavi. If he finds the perfect setting, he'll be powerful. Barcelona may regret releasing him