Having held the Premier League champions in a goalless first 45, Watford fell behind in the opening seconds of the second half at The Etihad as Raheem Sterling scored despite appearing to be in an offside position.
But the England winger's opener was initially flagged offside, only for the officials to conclude after a lengthy discussion that the goal should be awarded.
"I have two more years here and I am (not) going to move", he said.More news: Portland metro Saturday weather: Fog then the sun shines
Admitting that it is much better to be on top, Guardiola gave a stunning revelation on the possibility of them failing to get maximum points along the way.
"It is always so hard to attack when [Andre] Gray, the striker, is playing the position of the holding midfielder".
That goal brought some belief to the Watford approach and there were a worrying few minutes as they launched high balls at us but we withstood their attacks and dealt well with the increasingly desperate passes. I celebrated the goal and then I saw the linesman - [and thought]: "'OK, offside.' After, he stopped and talked to the referee and you see the goal". "We are now investigating these matters and will allow Manchester City every opportunity to explain the context and detail surrounding them".
"It's a pity to come here and the first questions are about the referees. If he is offside, I am sorry". They have also made it to the quarterfinals in UEFA's Champions League, beating out Schalke 04 in the Round of 16.
Other Premier League managers have backed the introduction of VAR, including Arsenal's Unai Emery.More news: R Kelly released from jail after mystery child support payment
"There is a simple solution".
Watford had lost their seven previous league meetings with City, but they were putting up a very resolute display in defence, although Foster was called upon right at the end of the half to push behind a snap-shot from a tight angle by Aguero as City tried to find the all-important breakthrough.
Guardiola added: "Next season, maybe VAR is going to solve this situation".
We are used to teams coming with little ambition but Watford took time wasting tactics to new levels.
"I don't like to lose games for a bad or a wrong decision".More news: Titans reportedly out of race for WR Antonio Brown