Mbappe does not dictate anything, he just told the management about his decision and they have to make a decision. They do not want to let him go as a free agent, because they understand that a lot of money was spent on transfers and salaries, but PSG did not achieve their goal, so they want to return at least some money. They want assurance that Mbappe won't leave and obviously the team needs him, but apparently Mbappe wants to play for other clubs while he's young and full of energy.
Yes, it is very clear that PSG will not let him go that easily, PSG still needs him, but on the other hand, management must also be able to respect his decision. Too much money has been spent but they have not been able to get anything for the contributions that have been given. The problem is with one year remaining on his contract, he can leave PSG on a free transfer, and of course, management doesn't want that to happen. Now it is reported that PSG is trying to persuade Mbappe to accept the option of a contract extension for another year and if in the end Mbappe still refuses the offer, then there is only one way for PSG, namely to sell him at a high price this summer. It's very confusing for PSG but it's the only way. PSG is better off selling him when Mbappe still has value than next season on free status. This is a concern for Real Madrid, who are currently losing their flagship player, namely Benzema, and it is very likely that Mbappe will go to Real Madrid to replace Benzema.