Real Madrid, like the most successful and one of the richest clubs, looks in the eyes of other clubs/agents/football players, etc. looks like a cash cow that can pay overprice. Therefore, they are always forced to consider several options and even give up some of their goals so as not to overpay. If this transfer does not take place, then of course Real will find alternatives, but it seems to me that at the moment it is time to get out of the deal since the player will be too expensive even if Real finds a common language with Bayern.
Correct. We even have to remember how Real Madrid got a great player like Mbappe. Well Real Madrid did it with great patience. This club does not like to pursue deals that are considered too expensive or deals that are a bit pushy. This club is always good at looking for other options when they fail to get their top choice. And in the end this club will get what it wants at the right time, just like when it got Mbappe on a free transfer. And that is the extraordinary way Real Madrid has shown in hunting for players. And actually, many players are always interested in Real Madrid. So looking for other alternatives will always be easy for this club. And it's even possible that players who refuse to join Real Madrid will regret it in the end. 
Real Madrid did not get Mbappe for free; his signing bonus is higher than the amount paid for 99.9% of player transfers. But the fact that Mbappe comes to Real at the right time is 100%, first of all, because Real showed that even without Mbappe they can take all the titles, but Mbappe cannot without Real.