Xabi Alonso is new to Real Madrid, and I think he still needs time to adapt. So, the Club World Cup's outcome shouldn't be used as a pretext to assume he's failed.
There's still plenty of time for Xabi Alonso to improve the team, especially their defense, which still looks very weak.
And Real Madrid must still be considered for next season's Champions League campaign, as they possess a very strong mentality and can perform better in high-tension matches or under pressure.
I'm a Real Madrid fan, but I must admit that Real Madrid is much weaker than it was in the season that just ended. With Ancelotti, we only lost because of defensive problems due to injuries, but when the whole squad was available, we didn't lose. Now, with Xabi, the team is a complete disaster.
I haven't seen the team play motivated, and I also don't understand why Rodrygo isn't playing 90 minutes. With this result against PSG, I highly doubt Real Madrid will even make it far in the European Champions League. To be honest, they have no chance of winning the European Champions League next season, and I also have strong doubts that they can win La Liga.