Real Madrid is trying their best to consolidate the team with new comers like Dean Huijsen coming from Bournemouth and Trent Alexander-Arnold from Liverpool. Alvaro Carreras is the last comer to the team. So far Real Madrid is pointing to the defence line to fix the issues they are having there, especially with injuries during the season.
There is also talks about a potential switch of Ibrahima Konaté + additional money by Liverpool in order to get Rodrygo in exchange. Both parties didn't agree about the amount of additional money, otherwise this possibility might happen because Liverpool don't want to see Konaté walk free to Real Madrid next year for free.
So yeah, Xabi Alonso is working hard to make the team great again

For Real, this is their favorite type of deal to get players for free as free agents. It is true that Real is working on strengthening their defense but it did not work out well for them against PSG. I think that the specifics of Real's game will always be difficult for their defense, because they often get carried away with attacking, their defense has open areas, so they concede and it will be difficult to change that. When Carvajal and Militao return fully to the game, it should change everything for the better.