Bayern Munich is a good team and their position in the Champions League is good. However, if we compare their performance with PSG's team, Bayern Munich is in a good place. However, if Bayern Munich meets Manchester City earlier, Manchester City has a higher chance of advancing to the next stage.
I agree that Manchester City is probably the biggest favorite to win the Champions League this year. That being said, ManCity was probably the big favorite to win this competition in the last 5 years in a row or so, but so far they did not manage to win it once. In order to really win the Champions League you not only need to be the best team you also always need a bit of luck and the timing on your side.
Bayern Munich though comes right behind ManCity in my opinion and i also think that this is a great achievement by Bayern. They don't have a rich oligarch or sheikh behind them like PSG or Manchester City and they also don't have huge amount of debts like Real Madrid, Barca or many english clubs. In fact Bayern even has Money laying around in the bank. Still Bayern is able to keep up with those teams.
Bayern may not have the financial power of PSG or Manchester City, but they have a great football tradition, a very famous football school, organization and history, and money can't buy that.
The very fact that the owners of PSG and Manchester City have invested so much money in these two clubs and have not yet managed to win the biggest and most important trophy, the Champions League, shows that success cannot be bought with money and that success is built through years of patient work and investments.
I'm not sure if Manchester City is really the main favorite to win the Champions League this season. What about PSG, Real or Bayern?
I'm sure that we will again have a very uncertain and exciting end of this competition, and regardless of the current small crisis of the game and the results, I give Real the best chance again.