The Spanish coach penned a new contract keeping him at City until 2027 last November but the former England striker is concerned that rebuilding the squad after a disappointing campaign may be a step too far for the manager.
Crouch told TNT Sports: "I think he may regret signing a new deal. I think he doesn't want to leave the club, he has created a dynasty, hasn't he?
"He has created something incredible, listen he has done well.
"I worry for his health, genuinely, because I think there is a big job on his hands here.
"They have got top players if they rediscover form. I think, defensively, Kyle Walker saved them on multiple occasions in the Champions League with his pace.
"I think there is a personnel overhauled needed."
City face a battle to qualify for the Champions League when the Premier League resumes after the international break next month and Crouch's fellow pundit Rio Ferdinand says the club's unexpectedly bad season is "stressing the life" out of the manager.
The former Manchester United defender said: "I don't think he can do it any other way than fully high octane.
"There is no other way, he is 100 per cent invested and it looks like it is stressing the life out of him, even when he is winning it looks like that.
"Just because he is losing we are scrutinising him and maybe it looks a bit worse.
"He has just never been in this position where he is looking up and scratching and clawing to stay in amongst it, let alone win it (the Premier League).
"He has never been there, so that is one question he is going to have to answer next season. I think he has got the energy, but I think his team lacks the energy."