Boasting 75% possession and 19 shots on goal, the Citizens were on course to claim maximum points after putting themselves two goals ahead courtesy of strikes either side of half time from Jack Grealish and Rico Lewis.
Grealish scored his third goal in as many Premier League games to put Man City ahead just before the half-hour mark, before 18-year-old academy graduate Lewis netted his first Premier League goal shortly after half time.
However, the Citizens let their two-goal lead slip in the final 15 minutes, with Jean-Philippe Mateta making the net ripple before winning a penalty for Palace after being fouled from Phil Foden, allowing Michael Olise to restore parity from the spot in dramatic fashion on the 95-minute mark.
Man City, who have won just one of their last six Premier League games and have dropped eight points from winning positions during this period, remain fourth in the table, and the reigning champions could slip six points behind leaders Liverpool if they beat Manchester United on Sunday.
Reacting to Man City's draw with Palace in his post-match interview, Guardiola said: «It's not bad luck. It's deserved. We gave away two points.
»For yourself, when you give this penalty [away] you deserve it. You see the chances we create and the chances we concede are quite similar all this season, except the Chelsea game. We are not able to close the games."
Guardiola was left perplexed at how his side did not increase their lead before collapsing in the final 15 minutes, adding: «When 10 players are in the 18-yard box with 10 metres of
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