This is actually a really interesting real-life instance showing that, in this particular case, RCV didn't achieve an optimal outcome.
But what's a better voting system that would have achieve the presumably optimal outcome here (the less-polarizing GOP candidate Begich getting elected)?
If we just compare to simply plurality voting, the outcome seems the same: Peltola got the highest vote of the 3, so in regular FPTP voting, she would have won. Or if we compare to FPTP party-based elections as is normally done in the US, I think again it would have been the same: the GOP vote was split between Palin and Begich, and presumably Palin would have narrowly won that party's primary, and then enough GOP voters hated her enough to list Peltola 2nd-choice in the RCV, so presumably they would have also voted for Peltola in a regular party-based election, so again the outcome would have been the same.
If anything, I think this shows that these multi-candidate elections have odd-looking results when there's uneven numbers of candidates for the different parties. If there had been 2 DNC candidates, this might have played out quite differently. But maybe not: in this particular election, one of the candidates (Palin) was extremely polarizing and many voters truly hated her, but she had enough support from the right-leaning voters to get a majority on that side, over the more moderate Begich. But that was unique to the GOP side; there's no reason to think that the left-leaning voters of Alaska would have similarly voted in high numbers for an extremely polarizing candidate like AOC: Alaska just doesn't have many far-left voters the way some other states do. So it seems like the right outcome may have been reached here, because so many GOP voters in Alaska are willing to support a very extreme and polarizing candidate, rather than a more moderate one: they ended up making themselves irrelevant.