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These are some really important issues about Xabi Alonso tactics and recent loss to PSG. Team defense clearly has problems letting in four goals. You are right that having too many attacking players can make defense weak. It also looks his three defender plan is not working, showing he is still trying to find best way to use his players to make them strong everywhere especially in defense. It will be interesting to see how he fixes these defensive issues.
I'm curious about how Xabi Alonso will improve Real Madrid. He's been adamant about developing a game plan with young players, but the results haven't been visible. In fact, Real Madrid's defense looks weak. Xabi Alonso hasn't found the right strategy so far, and he still has a chance to correct his mistakes before the season starts.
Let alone Xabi Alonso, even Carlo Ancelotti has a bit of a headache managing a club with too many attacking players, which ultimately makes their defense slack. So, we can't judge Ancelotti for being incapable of managing Madrid when they have so many star players. In fact, even when changing coaches, Madrid has experienced the same thing.