Actually, Lucas Vasquez is a good player, but because Carvajal is able to maintain his good performance when he gets playing time, he spends more time on the bench than getting playing minutes. An additional year on his contract means he will stay at Real Madrid for one more season, he must give his best performance to attract Ancelotti's heart and add his name to the list of players the coach wants.
Meanwhile, Luka Modric, who was previously expected to follow Ronaldo to the Arab League, instead received an offer of a contract extension from Real Madrid. He was very lucky because at the age of 38 he was still really needed in a squad which on average consisted of relatively younger players. Maybe Ancelotti sees him as a leader and his experience can guide younger players to help bring out their full abilities. Modric may soon follow Toni Kroos after his contract expires or look for another challenge in a lower level of competition before officially retiring from football.
Lucas Vasquez can perform well when Dani Carvajal absent and Carlo Ancelotti put him as left defender or left winger side, its good offer for Real Madrid extend him one year contract and I think has optional for him get another extend depend on his performance next season keep consistent playing well or not.
Real Madrid not linked with new players sign for left defender position and make Lucas Vasquez get secure more minutes playing as back up for Dani Carvajal position when getting injury although his performance very well in Euro 2024 with Spain.
Luka Modric and Lucas Vasquez getting one year contract extended because both of the played well in this season, Carlo Ancelotti still need them most often not get regular position but always effective with their performance when getting more minutes playing as regular position or substitutes players. I believe both of them become good guider for young players of Real Madrid next season where they have many youth talented will promote to senior team.