If they have to, they'll pull off a version of what NBA did last year. Form a bubble over the Olympic Village, so to speak. It worked in Orlando for the NBA playoffs.
Men’s Basketball is 1/2 page in a 31 page schedule, with 2X as many teams playing at least 1 game. Suffice to say, if 1 player has covid, any opposing player/ref can get it, the other players on the team have to quarantine for 14 days and there isn’t room in the schedule to reschedule.
Vaccinations are NOT mandatory for the athletes and the IOC is all about the don’t ask about health.
Unlike Floridians, the Japanese are rule followers and those rules are if someone tests positive for covid, they don’t say whatever, no big deal, they shut EVERYTHING down and scrub the place in hazmat suits.