The Brazilian, 20, went off in tears after appearing to injure a knee during the first half at Selhurst Park.
Following City goalkeeper Ederson's dramatic late penalty save, Palace's Jason Puncheon lunged in on De Bruyne and took out the Belgium midfielder who left the pitch on a stretcher, with his right leg in a brace.
De Bruyne was stretchered off after a strong tackle from Puncheon, but was seen walking back to the City dressing room accompanied by two medical staff and told reporters he was OK. "Today we were not lucky", he said.
Guardiola can at least console himself that his team heads into 2018 with a 14-point lead with 17 games remaining. But when you miss a penalty, there is always an element of sadness. There is one line but where you go beyond it, that is unsafe. I admire the physicality of the league, but the referees have to protect the players.
"I'm very proud of the team's performance", said Hodgson.
Despite that, the FA feel it did not meet the criteria for a clear and obvious case of diving and the Crystal Palace player will not face any punishment.
'Obvious Violations of Law' in Abedin Emails Show Need for New Probe
Others are marked classified and have been heavily redacted. He is now serving time in federal prison. Abedin filed for divorce from Weiner.
Soon after City's game, and hours before Arsenal kicked off, Guardiola said there would be "internal meetings" over whether the club would make a bid for Alexis Sanchez in light of the injury to Jesus.
That City performed below the extraordinary level they have consistently achieved this season meant that they dropped points in the Premier League for only the second time in 21 games, and for the first time did not score.
Watford is the first test, with Marco Silva's team going into the game having had nearly 24 hours extra rest than City since their defeat against Swansea on Saturday.
Kyle Walker rarely let Palace's in-form Wilfried Zaha get the better of him, and made more interceptions (three), gained more possessions (13) and sprinted faster (34.69 km/h) than any other City player.
Raheem Sterling is the only Premier League player to have both won and conceded a penalty this season.
Crystal Palace have only lost one of their last 10 Premier League games (W3 D6), having lost 13 of their 16 before this run.