Kalvin Phillips is 27 years old and almost 28 years old. even in the Premier League Pep only played him 4 times this season. It's clear he finds it difficult to compete with the names in the Man City squad.
If he is no longer part of Pep's plans, there is no harm in Man City giving Kalvin Phillips the opportunity to grow and show his potential with another club. at Man City, he is difficult to compete with and Pep certainly won't see his potential. but if at another club Kalvin Phillips was allowed to play more time that could be good.
Rumor has it that Juventus is very interested, as is Milan, who might disrupt negotiations if they make a better offer.
With that age, Kalvin Phillips must expect to play regularly. His chance to play in Man City is getting smaller this season because Pep Guardiola signed Mateo Kovacic and Matheus Nunes. So far, Pep Guardiola prefers to give more time to play for Mateo Kovacic and Matheus Nunes. I assume these players are more suitable with Pep Guardiola tactics. Considering this matter, it makes sense if Kalvin Phillips needs to find a new club if he wants to have more time to play. I don't see a chance for him to get more opportunities in Man City. By the way, Newcastle is rumored to try signing him. But if Juventus and AC Milan has are also interested, they are also good options because they are top clubs in Serie A. He can choose in which team that he can get a chance to be the main player.