I think Liverpool have been defended better by everyone not just City, in fact all City had to do was play 10 yards deeper, Liverpool very much try and play the same way, it just doesn't work if teams don't allow them to ping balls behind the fullbacks. City are wise to this, which is the opposite to last season, heat maps from last season show City played with 11 players almost in Liverpools half in the 2 CL games, just a bit below that in the 4-3 in the league.
This year we simply kept Mendy and Walker back and played a decent line (not Jose deep but deep by City standards), this is the opposite to the thing Pep did at Bayern where they got counter attacked to death in the CL so maybe he's learning from his previous result. I wouldn't call 3 semi finals at Bayern underperforming, I'd call it acceptable but not great. His two campaigns at City have been far below par though and both have been down to him playing naively similar to Bayern.
I agree our first tough test in the CL will tell, will he revert to type and vs players who can murder us on the counter play a crazy high line, or continue with the blueprint he set out vs Liverpool.
Don't think a semi is enough to be a great team, we need a win in the next 2-3 seasons and a couple more league titles imho.