Manchester city are the first favourite, they are playing on another dimension ever since Erling Haaland was signed,then there is real Madrid who has history, experience and luck in this competition then we have Bayern Munich.
The supporters of Manchester city have high hopes for Haaland hoping that he will be the one to help break pep's champions League curse. I think it is possible as well judging from how well he has settled into the team. Manchester city going against any other team have a high chance to win because they have always been a goal scoring chance creating team and with the addition of Haaland, who can convert like 8 in 10 chances created, i don't see any team being able to stop them, except their own over confidence.
He is the missing piece that Manchester city have been searching for, with him upfront there is always hope for his teammates that something can come out of nothing, but the biggest fear is if he got injured, then he is going to affect them badly, because the players have started getting use to him but that won't be the end for pep Guadiola because he knows how to score without using a striker, he use a winger(sterling) and a midfielder (gundogan) in that position as false nines and still won the league and score close to 100 goals if not more but let's not also forget that they still got Alvarez the Argentine is a decent striker to cover up for haaland.