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It's quite sad to see De Bruyne leave Man City in this manner. Even though he used to be a key player, but he had no power to resist his aging, which ultimately makes him not as good as he used to be. Man City and Guardiola must be thinking realistically, therefore instead of extending De Bruyne's contract, they will definitely look for a replacement.
But it's quite strange that not a single club in Europe is interested in De Bruyne. Is he really that bad? Or is it about the fee?
The decline experienced by KDB is inevitable, especially after he suffered an injury and not only that, but his age is no longer young, especially when he is in the English League where we know the intensity of the competition there.
I am not surprised by this, because from the beginning (especially when the decline has occurred), it seems that there must be another player who can replace his role. As you said, Manchester City needs to regenerate its players, because they still have to compete in the long term. If they are a little late, then usually they will have difficulty getting up.
Manchester City do need to regenerate, and De Bruyne feels it's time to part ways. I think clubs from MLS or SPL will try to offer De Bruyne one last chance before he retires, and usually their offer will beat European clubs. De Bruyne decline in performance has had a big impact on Manchester City overall performance, and maybe Pep Guardiola will also release several other players in the upcoming summer transfer market.
The defense and midfield seem to be Pep Guardiola main focus, where these areas have shown quite a lot of weaknesses this season. With a fairly stable financial condition, Manchester City can easily find replacement players. Pep Guardiola will certainly take a lot of lessons from his team's decline this season, and I think next season Manchester City will be even stronger.