Why Italy still may not convert a Caracciolo into a carrier

Would it make sense for Italy to convert a Francesco Caracciolo-class hull into an aircraft carrier?

It could work technically, but Italy would probably still prioritize battleships because the Regia Aeronautica argued that land-based aircraft could cover the Mediterranean.

The obstacle is not an inability to construct a carrier. Italian naval aviation policy was constrained by an air force that saw the enclosed Mediterranean as reachable from shore bases. The alternate treaty also gives the Regia Marina exactly the battleship programme it wants, making a carrier conversion less attractive. Financial pressure matters, but rivalry with France could still unlock money for visible capital ships more readily than for an unfamiliar carrier concept.