I do not think Kyle had this in mind. As a member of a team, they are all aware that there are games where their strength is needed and other games where other people's strength is needed in the game. Kyle Walker is a fast defender and against some very fast wingers like Vinicius Jr he is an excellent choice to close them down, but for some other types of wingers in the champions league, Pep had a better choice. Everything is to the teams success. It is like he wants a new challenge, maybe that is why he wants to leave to another club.
Yes, I also think that he wants to find a new challenge at another club. Having Davies and Walker on the Left/Right back has been a nightmare for every opposing team. Bayern Muchen taking the fastest defender and then having De Ligt and maybe Kim Min-Jae at the back is already a nightmare for any team including Man City if they meet in the Champions League. because they also have a defensive midfield commander, Kimmich, If this happens I think Bayern Muchen will be the most perfect team. In the end, I conclude that Bayer Muchen's wish is truly fulfilled. Bayern already has a very talented squad, adding Walker and Kane. Imo would make them a real force in Europe.
Pep Guardiola has spoken to Kyle Walker, but the decision is up to the team and the players themselves. Regarding his future, Kyle Walker still has to consider staying at Manchester City or moving to Bayern Munich. So far Bayern Munich may have been very serious about signing him, but I think Kyle Walker is still good to stay for another season at Manchester City.
It's fine with Kyle leaving, loved him for years but Pep Guardiola won't stick around an unhappy player. So he will be replaced by a younger version.