First of all, I understand that this will be mostly a mathematics questions. However, I'm asking this in the context of General Relativity, which comes with its own language, conventions and applications. Furthermore, understanding diffeomorphisms and coordinate changes is one of the most important theoretical aspects of General Relativity so I think this is the best place to ask.
Setup
Let there be a manifold M with coordinates $x^\mu$ with $\mu=1,\dots,d$ and a diffeomorphism $\phi:M\rightarrow N$ that takes points in M to points in N. In the context of general relativity, it is most likely that N is physically the same manifold as M and $\phi$ is only moving points around. Specifically, if $x^\mu$ are the coordinates on M then there are coordinates $y^\mu$ on N such that
$$\phi^\mu (x)=y^\mu$$
How to act with a diffeomorphism on a function
I always thought that if we are given a function $f(x)$ on M, acting with the diffeomorphism $\phi$ is just
$$\phi^* f(x)=f\big[\phi(x)\big]$$
That is: we are moving every point $x^\mu$ to $f^\mu(x)$. This is a physically relevant transformation since the function used to be evaluated at some point in the manifold, and now it's evaluatedon a different one.
Let me clarify and say that I understand that this definition doesn't make sense mathematically since f is a function that takes points on M, not N. However, since $\phi$ is a diffeomorphism and M and N are the same manifold, I think it makes sense physically. For example, doing a simple traslation
$$f(x)\rightarrow f(x+\epsilon)$$
would fit with this definition, we send every point $x$ to a new point $\phi(x)=x+\epsilon$.
However, when looking at the definition of the pullback of a function, it works in a different way. Given a function $g(y)$ on N, the pullback by $\phi$ is given by
$$\big(\phi^* g\big)(x)=g\big[\phi(x)\big]$$
I understand that with the pullback we changed the domain of the function: $g(y)$ is a function on N, $g\big[\phi(x)\big]$ is a function on M. However, fundamentally, the two objects are physically the same, this transformation is just a change of coordinates but the coordinates $y^\mu$ and $\phi^\mu(x)$ represent the same point on the manifold. I would be even tempted to simply remove the pullback symbol and write $g(y)=g\big[\phi(x)\big]$ since both functions will give numerically the same result, even if their domains of evaluation are technically different manifolds (N for the one on the left and M for the one on the right).
Question
Is there a sense in which both of these are correct? Are there different names for them? Does this relate to active and passive coordinate transformations?