I have no idea how the offside rule still hasn't changed. There is absolutely no reason for the rule to come into play when there are players from both teams present inside the penalty box.
This horrendous aspect of offside is actually contributing to a lot of the shirt-pulling and unnecessary scuffles that have ruined football. When strikers want to avoid being offside, they have no choice but to stay close to defenders. This gives both players an incentive to hold onto each other via shirt-pulling or downright wrestling. It's ugly.
The offside rule should not be enforced inside the penalty box when both teams have players present in it. It was not meant for that.
Absolutely correct call based on the rules. Real got eliminated, but I aint going to blame the VAR VAR did its job, however, the rules I think needs to be changed,