Of course, releasing Alexander Arnold is a loss for Liverpool, but currently he has not renewed his contract which will expire in January next year. So the possibility is still unclear, but Madrid will definitely look for a replacement for Carvalaj. Of course, Ancelotti has to wait for the winter market to open, maybe an alternative can also be taken from Real Madrid's young players. Of course, they have to use the players they have at the moment and make the player collectivity better and minimize injuries. Another problem, indeed Madrid was not very active in the last transfer season.
Liverpool losing Alexander-Arnold after this season ends is a completely possible prospect. Certainly, this is a big loss for The Kop. Alexander-Arnold's influence on Liverpool's style of play over the years has been huge. However, The Kop can still look for new names to replace. It wouldn't be a disaster if Alexander-Arnold left Liverpool at the end of this season.