I don't think defending deep and playing counter-attack is a bad thing per se if it's the occasional set-up and not a weekly thing. Nothing shameful about it against Bayern.
But the point of defending that way is precisely protecting your box so you don't concede many clear chances, trying to surprise at the break. If you are a red carpet anyway and concede 31 shots (4.14 xG) and barely cross midfield with 6 attempts (1.54 xG) then you don't need a bit of luck but a miracle, which is what happened yesterday.
If it's more the players or the manager, difficult to know. But it's the second CL game in a row where they look like a broken toy in the hands of the opposition. That second game against Barcelona was very poor, it could have ended in accident and yesterday got even worse.
Honestly and with all due respect to the man, I'm not sure if PSG made the right call with Pochettino, regardless of the ball going in or not. Better than Ole and whatever people want, but he couldn't be farther from being the aggressive winner that teams like PSG are looking for to win the CL desperately. Pochettino has been excellent at developing players and building his own basis patiently at Spurs, without much pressure around. But when he had a proper team to aim for something they were melting under pressure in key days with very unconvincing displays, with the rare occasional exception.
When I see this PSG team they look the same bottlers again, always at the brink of a mess. They got away with it against Barcelona, but if Lewandowski is there and the tendency of the game remains the same, I can't see how these guys are going through, and then they have to beat a pair of teams more. The fact of not leading their league is laughable by the way, like the guy is allergic to trophies.
Honestly I don't know how a PSG team desperate to win the CL by the quickest route avoids a good tactician like Allegri for example, and hires a minimum goals achiever like Pochettino. Difficult to understand.