There is defo a player in there somewhere no doubt about that. I find that his problem is that he does'nt really know what he is. Midfield is a vital position on the pitch. Davies is not really a defensive midfielder as his tackling and positional play are not good enough, he's not really an attacking midfielder as his running with the ball and control and passing are not good enough. He has the energy for a box to box type player but not really the technical ability and he's not a no10 type either as he does'nt score enough goals and can't really dribble with the ball. Imo he needs a coach(rather than a manager) to come in and mould him into a position and work with him on playing in a particular postion and teach him to play to there properly.
Agree with a lot of this, the problem is that this country & we are guilty of it too is that we play youngsters out of position to get them minutes and experience.
In fairness It’s often out of necessity central Players wide whether it be centre half’s at full back or centre forwards wide.
However we need to look at players & address the weaknesses in there games which mean they have to play out of there favoured positions, & not simply keep playing them out of position.
For all the will in the world Davies is not a number 10 or the furthest forward player in a Midfield 3 it’s simply not his game.
He is a centre midfielder box to box who is extremely comfortable taking possession of the ball under pressure currently he lacks positional Discipline & has a tendency to let runners run of the back of him.
However as you suggest coach him on this work on it. Don’t let him become another barkley & play him out of position as it’s the easiest option it will only end with another player failing to reach his true potential.