I don't think Guardiola will want to compete for the Premier League title this season. I think Guardiola's goal this season will be to qualify for the Champions League from the top four of the Premier League. I don't think City has any chance of winning the Premier League title. Liverpool's achievement in 19 matches is 46 points. On the other hand, City's achievement in 20 matches is 34 points. Manchester City is far behind.
At the moment, Guardiola will definitely want to qualify for the next round of the Champions League. If they don't do well in the next two matches of the Champions League, Manchester City will not want to qualify for the playoffs. Manchester City will be eliminated in the first round. Guardiola will definitely not want Manchester City to be eliminated in the first round of the Champions League. At the moment, Guardiola's main target is to win against PSG and Club Brugge.
I think it's not because they don't want to, but rather because Manchester City's chances of competing for the Premier League title are still quite difficult because Liverpool, who have performed more consistently, will certainly make it even more difficult for Pep Guardiola to catch up on the points they are behind. The most likely chance for Manchester City to achieve is finishing in the Champions League position and that is something that is much more reasonable for them to aim for given their current position in the standings.
If they want to qualify through the Champions League play-offs then Manchester City must be able to win their remaining two games and perhaps that will be a little more difficult for them against PSG because the match will take place at PSG's home ground so the pressure will definitely be a little greater.