Alpaca can be baby-soft or it can be as coarse as human hair. It depends on the animal (and diet and environment and...). Think about just after a hair cut how itchy the cut ends are on our neck.
It could also be how the fibre was processed. Some of the cleaning chemicals are quite harsh and most of the time the itch comes from a sensitivity to those chemicals. But this
should go away with washing the sweater.
It's a beautiful sweater. I would almost be tempted to take it to a knitter and ask their price to lower the neckline. It's actually quite easy in a sweater like that. Maybe 2 hours work.