Yes, Gundogan's return to Man City at his age is no longer young, indeed more speculations about the reasons why. If related to the salary, it may make sense. But why Man City should get him again? They got him for a free transfer. However, his position? Hmm, definitely back to his best position, as a CM.
Pep know Gundongan isn't a finished player yet, that's why he back to Manchester City. If you check Barcelona stats in the last year, the player with highest rating was Gundongan. Gundongan can be used to replace De Bruyne position, he's a player who can create chances and have good shooting skill at the same time.
At least he can play for next 1-2 years