Therefore I believe the problem at Man City right now is not just because of the decline in performance of one or two players. Maybe there is something bigger for them to fix shortly. If not, as you said maybe they could lose some hope in the next season.
Man City has been a very strong team in several seasons, including in the Champions League and Premier League. But that does not rule out the possibility that they will experience a big blow that can make their players' mentality fall.
If City fails to advance to the next phase, it would be a great shame. Well, based on my personal point of view, the problems faced by Pep Guardiola and his squad are so complex. Starting from the injured players, Alvares' departure, Pep likes to rotate some of his players, some core players who are rarely played as main starters and as a result their performance is unstable. This season City has experienced a very significant downward transition, not to mention the problem of sanctions that they will face. This is more complicated than we think, and it seems that there is a polemic within the club and the Manchester dressing room at this time. Currently City is trying to recruit some newcomers, this is done for the sake of refreshment within the team itself. Although the main target has not reached a concrete agreement, it seems that City has a great chance of bringing him in. Apart from all that, City is a great and strong team despite their declining performance, Pep has the task and challenge to return his team to their true level of play. Mental problems should not be a big problem, but more on raising the motivation of the team as a whole. Their next opponent is Paris Saint-Germains, although as an away match, City must get full points in that match.