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

They are now aware of the mistakes of last season where they left the defense too empty, so Xabi wants to complete the squad that Madrid currently has in the defense, especially for their attacking line, which currently has Garcia who has quite good progress, especially since he is still very young.
For Konate I know he just wants to go to Madrid for free and it could be that for this season Madrid spend a little bit of their money but with the contract Konate has now it looks like they will prefer to wait rather than immediately sign this player just like what happened for Mbappe and TAA.
They are trying to build a squad in conditions that are actually still quite a struggle for Madrid especially since the level of confidence in the probability of Barceclona in La Liga is still quite large so this is quite an interesting challenge for Xabi in his new season.