Bayern Munich is currently going after a LW signing. It is their main focus that I can say. Luis Díaz is already their primary target you know. But they will have to pay a huge amount for him if they are insistent on it (more than 70 million euros).
Malick Fofana seems to be their backup plan. I saw a rumour linking him with them in this month. It wouldn't be too difficult to get him while Lyon is in desperate condition financially. But for now, they are sticking to Plan A which is Díaz...
I think it's too early for Diaz to split out with Liverpool, he still has a speed and consistent, although Liverpool have Gakpo, but Gakpo isn't as fast as him. If Gakpo failed, they only have Ekitike left, we don't even know how his performance with Liverpool.
Malick Fofana got some potential, but he's not ready to play as a starter.
Liverpool will release Diaz to acquire Alexander Isak. Liverpool may not lower the price too much if Munich is indeed interested and submits the next offer. Barcelona, which was originally also interested in Diaz, has already backed down after finding other options. Munich may also shift its interest to other players if Liverpool remains firm on their decision to sell him at that price. If the situation gets closer, Liverpool may accept Munich's offer to get Alexander Isak. But who knows, let's just follow the developments.