Man City have truly struck a diamond, and it wasn't in vain that they had to spend 150 million Euros to sign Haaland because it paid off handsomely. So it stands to reason if Man City offer Haaland a new contract (with the change in the release clause option) because they don't want to lose their goal machine. He has been the top scorer in two consecutive seasons, and it's likely he'll get it again this season as he's started the season so impressively.
I think you might have missed things up but Halaand was bought by Manchester city from Dortmund for a fee around 50 million euros and I don’t think there was add ons or any clauses that much. So the 150 million euros is fake. The deal is actually a bargain by Manchester city and this new contract is just to increase his release clause or buyout clause more. The 175 million actually looks too small if you ask me considering that clubs could pay ridiculous amount this days. Imagine when PSG paid 220 million euros for Neymar and 180 million for Mbappe, this 175 million euros can be trigger and that’s why you see clubs like Madrid putting a billion euros clause on their star players just to fend up potential suitors.
In as much as this is good for the club it is bad for the player because whenever they want out it becomes hard for them due to their clauses and wages. Halaand new contract could take him level with De Bruyne who is the highest paid player in the premier and if this happens it will be hard for most European clubs to match this offer in the future and he could be tied down to Manchester City for long