Davies has been Real bound since 2022. It became evidently 18 months ago that TAA was stalling on contract negotiations, so when Real's name popped up, it all made sense.
Their new model (as we've seen with Mbappé) is to commit to a player, encourage them to run their contracts down & acquire them on free transfers. That frees up funds for the likes of Bellingham.
There seems little to no chance of any team trumping Real if they really want a player. Most players see it as Real, then every other team.