...therefore Pep Guardiola still needs Kyle Walker's services at least until next season.
Of course, but the problem is that Pep wouldn't need his services throughout the season, he will be picked specifically for certain games, just like what happened last season. I'm pretty sure Walker doesn't want that, he wants to move to a team in which he can start nearly every game, and he knows City can't give him that and this is why they are offering him just a one year contract. If kyle Walker leaves City, it is because he knows that his game-time at the Etihad would be quite limited next season.
I feel that it's not that Pep doesn't need his services, it's more like Kyle Walker wants a change now. It's natural when you have achieved everything for consecutive years, a player always wants a change. It was same with Gundogan and it's same with Kyle. Pep always is happy with his squad but if a player wants to leave then he also doesn't tries to convince the player to stay at City. With City there will always be lack of playing chances because they want the depth of good players in the squad and there will always be someone feeling left out if Pep doesn't plays him for 2-3 matches.
Rumors of Walker leaving have surfaced as the defender began to feel uncomfortable. eroded playing minutes, so he had to find a new club. Walker's situation made Munich move. Incidentally, the Bundesliga giants are looking for a pure right-back to add depth to their squad. Recent reports said Walker had agreed to join Munich. it's just that Pep Guardiola doesn't want to let go.
Naturally, even though Walker is often rotated from the main starting eleven for Manchester City. but after all, he is part of one of the best players that Pep Guardiola has. but Walker clearly needs proof that he is indeed the best in the squad, one of which is by guaranteeing regular playing time for next season. if City do that, I'm sure he will stay at the Etihad Stadium. but there are no guarantees, it is not impossible if in the end the defender accepts an offer from Bayern Munich. a verbal agreement has been made with the player, Bayern only needs to confirm negotiations with Manchester City. besides that, Walker's age has entered 33 years. maybe, he wants to spend his retirement by continuing to play as a core player.
well, since so far there has been no official proposal claim from Munich, anything can happen.