Thinking about the last week, more and more this all seems to me like a pretty transparent ploy from Leroy's new agents to make a bunch of noise to prove they're actually doing stuff and hopefully squeeze a few extra Euros out of Bayern on personal terms. I still don't see any other scenario making sense:
Re-signing with City - Over the summer one thing was consistently reported from both English and German journalists: how superior Bayern's offer was from a financial perspective. The idea that we're now going to come back, after everything that's gone on, and award him the money he's looking for, on par with our top earners, seems very far fetched to me. If our offer was "close enough" from a financial perspective he would've just signed the deal after he got injured. I can't see it.
Going to Barca/Madrid - Barca signed Griezmann last summer and are trying to Martinez this time around, and even then probably need to move someone out for that to happen. Madrid signed Hazard and half a dozen Brazilian attackers, and are holding on to the dream of signing Mbappe, which speaking of...
Going to PSG - Would make a lot of sense if they lost either Mbappe or Neymar, but as we know Qatar and Abu Dhabi don't really play nicely with each other. Maybe, but I doubt it.
Bayern - Still makes the most sense. They have the money and a glaring need at his position. He would actually start every week, which he wouldn't do at either City or the Spanish clubs and he's still worth more to them than anyone else being German. His family gets what they want and he gets to win the Bundesliga every year.