Would you, being for ex. City director of football, pay 120m for him in these current circumstances? I definitely wouldn't as a risk is huge. Specially combined with wages Bayern promised him. It's giant money.
We'll never ever get 120m for him. That ship sailed with the injury. I was all for letting him go free in 2 years as his service with relatively low wages, could easily justify that. But right now, I'd sell him for 100m eur in a second. Chances for him to extend are pretty minimal, imo and keeping him until his contract expires is not worthy anymore as half of that period he'll sit injured and there is always a risk what kind of player will he be after, if the injuries will repeat etc..