It sounds like they're trying to cut wages and could sell some of their higher paid players ---- names like Gnabry, de Ligt, Goretzka, Coman, Kimmich, and Upamecano are all rumored to be available --- and they wont extend Davies at the price he's asking for.
People on here are taking victory laps like he sucks and that's why they're trying to sell him. But ask Bayern fans. They'll argue he was their best CB last season, and has been their best CB since he arrived. They're pissed he's even on the market.
I'd argue he's somewhere in the middle of all these hot takes. He's never lived up to his Ajax hype to become an elite, world class CB that many expected --- but he's good enough to be a quality starter for pretty much any club in the world.