I don't think Real Madrid is in a good situation right now, they nearly lost the La Liga title to Barcelona and there is o hope for them anymore and this can have a negative effect on the team, however, they have enough time to recover. On the other hand, Bayern Munich started working with a new coach and we can't be sure how they are going to perform even in Bundesliga also he needs some time with his team. While Napoli got a more stable situation.
I don't see league performance and Champions League performance in the same way. Real Madrid always do well in the Champions League. Although they are on the verge of losing the league title but I believe Real Madrid will surprise again in the Champions League. Moreover, Bayern Munich and Manchester City are far ahead in the race to win the Champions League.
you are right Despite performing poorly in the league, there are many teams who are capable of performing well in the Champions League. We have seen Chelsea's performance in 2020-21. Chelsea's performance in the Premier League was very poor. But this team has managed to win the Champions League title. Real Madrid and Manchester City are not at the top of their respective leagues, but they are doing well in the Champions League. However, it is not possible to predict which team will win the title this season. Several teams are favorites to win this year's title. I look forward to seeing the four teams qualify for the semi-finals.
One interesting about the Real Madrid and Chelsea UEFA Champions League quarter final encounter is that the two teams are almost out of the race to win their respective leagues. While Real Madrid is 12 points behind their league leaders Barcelona, Chelsea on the other hand are 10th in their own league table standings.
So they know that their only chance of winning a major trophy this season is to try as much as possible and win the Champions League. Real Madrid stands a better chance because of the experienced players in their squad and also the Champions League winning mentality the team possess so for Chelsea to win the tie, they're gonna put out an extraordinary performance against the 14 times champions