[PROBLEM] Official touchscreen display and ALSA error

[Nutul]

I just ran a quick test with a Revolution USB DAC + Pi-3B + Pi Touch and did not experience any issues in audio playback with Local display On or Off.

So what's the option? Is there any option to reinstall without deleting other contents of the sd card?

To re-install, I am afraid not.
You can create a backup, eventually, and then re-flash.