They lost the FA cup final, but this happens to the best teams in the world. It was against Manchester United, which was quite a shame, but they played better football in that game. In the Premier League they had the best offense and the second best defense. In the Champions League they dominated Real Madrid in both games, but ok it is still Real Madrid and they got the upper hand in the penalty shootout, which again is not something that is unacceptable.
It's hard to understand what is going on with them and not it will become interesting. They extended Guardiola's contract and it would be ridiculous if they sack him weeks later, so I suppose they are going on with him no matter what's going to happen.
It's hard to say, the decline of Machester City in the hands of Coach Pep Guardiola makes everything worse, I knew they were having some problems, but no one expected them to regress so far, 22nd place is a bad position, Machester City must get up soon or they will fall further behind.