The Sacred Timeline is still alive while being nurtured and taken care of by Loki. Given Loki S2 is canonically set after the events of all other MCU movies and series (barring Deadpool & Wolverine), the MCU anchor being cannot be dead, otherwise that would have been a pressing concern for the TVA by the time D&W occurs. Loki must be masterminding the Sacred Timeline so that their anchor being does not die, therefore it has to be someone who is still alive.
There is also the possibility that the Sacred Timeline doesn't have an anchor being, or it has healed itself in spite of their anchor being's death (in the same vein how in spite of Wolverine's death at the end of Earth-10005, Deadpool and Wolverine managed to heal the timeline, negating the effects of the anchor being's death, somehow). If we go by that logic, He Who Remains sort of works as the Sacred Timeline's anchor being, for his death creates a series of chaotic events that could doom the entire timeline, but is ultimately resolved in Loki S2. Loki himself could be the Sacred Timeline's anchor being, as he is, quite literally, the anchor for the entire timeline (if he dies, its all set for decay).
