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The only way forward is to distance themselves as far as possible from the mother series. The problem is that the lore is messed up in a way that resonates back in the timeline (whitewalkers, targaryiens, dragons, children of the forest, armour, climate, physics, magic to name a few).They might sell me on a soft reboot if none of the writers or directors of the D&S era have a hand in it. Or if Mimi Leder and Lynne Ramsay are the head writer / showrunner. Even than I will probably be watching the first episodes with my arms crossed daring the show to change my mind. If it goes the Picard / Discovery route it migth at least be fun to trash talk it in a negan era walking dead style podcast .
Lalo told that surviving commando to call his contact that the job is done. So in a way he is already out of the show.If Nacho lures him out and Mike after hurrying down there kills him from behind it would be a nice symmetry with Mike and Saul in the desert. With no one else knowing that Lalo survived the initial attack they could just dump the body at Lalos farm. There Mike sees all the innocent that died and decides to help Nacho disappear and calls him in dead, too.