The Caps are not going to rebuild, and have come out and stated as much. They're going to ice as competitive a team as they can for the rest of Ovechkin's contract. They also want to add youth into their lineup, but that's as far as it goes where a rebuild is concerned. They sold on UFAs when it appeared that they'd miss out on the 2023 playoffs, but their plan was always to add this summer.
This is a retooling situation, coupled with turning over some of the roster and getting younger. That means injecting young players and prospects (Sandin, Miroshnichenko, Haman-Aktell, Protas, McMichael, Alexeev, maybe Lapierre) into the lineup, and perhaps the odd trade.
The Caps and Orlov couldn't bridge the gap during contract talks this season, less due to a difference as far as AAV is concerned than on term. Whether there's room to revisit that is an open question, but the Caps would be interested, I think. He might not get as long a deal as he'd find elsewhere, unless the Caps have had a change of heart. I doubt the Caps will be dangling the longest and richest deal out there.