Not quite. It's a sign they've learnt from the Sancho mistake. They've determined he isn't ready for their first team squad, and may not be for several years. They have three options:
1 - Let him run his contract down and leave with no say in the matter like with Sancho
2 - Keep him in contract and out on loan for several years to see if he develops. It can work (see Harry Kane) but some players need a settled environment to really develop
3 - Sell him but with a buyback clause. Then he has a chance to develop in a system and, if he makes large strides, they can nab him back at below market value.
So from Man City's point of view, it lets him mature whilst retaining an element of control on his future.
The problem for them is if he makes an interim move then he'll be out of their clutches.
Ibe had a buyback clause. Liverpool got to see if he could make it at no risk to them.
Personally, I'd ban buyback clauses but then I'd also restrict teams from player hoarding. Neither will happen as they both favour the six.