Doesn't look good but it's his first squad. He wants to see first hand who can be useful for him, so it actually makes sense really to have some of the old guard in for a last chance before moving on from them, he has a 2 year contract, it's not his job to be looking 5 years down the road.
Ignoring the injured, i don't think there's really any obvious omissions from that other than probably Gibbs white and perhaps hudson-odoi. Wharton has played like 3 games after a big injury, too early for him to come in
As for City picks, I don't think anybody has been hard done by, Rico doesn't have a position, isn't playing often enough and tuchel won't be playing like Pep so has no use for a small weak midfielder playing at fullback. grealish has been woeful, no surprise he's nowhere near the squad, stones obviously injured and Foden makes it in probably on name, I'd have had no complaints if he had been left out too.