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We always have an order of which teams are the biggest favorites in this competition, Real Madrid is always the name that has a place in the favorites, Manchester City also has a place there, teams like Bayern Munich, Barcelona and others will also be there, especially lately we have seen many clubs improve.
The clubs from Serie A are also now starting to pose a real threat after a few seasons where they seemed to be drowning. The peak of last season they could occupy a strategic place in the final round, and one of them INter Milan who managed to penetrate the final party.

Talking about favorites, we already know the team that will reach the important stages in UEFA Champions League this new season. You're absolutely right about picking Real Madrid, Manchester City, Barcelona and Bayern Munich. The Seria A clubs putting up stunning performance this season in UEFA CL, and other elite competitions. Last season, we had three clubs from Seria A that made it to three finals, and they all got defeated and went home without a single trophy. I guessed this season will be different one, expecting Inter, Juventus and Napoli to pulled a competitive race for UEFA Champions League this season.

Real Madrid have always been at the forefront of the Champions League trophy race, with many saying they are the kings of the Champions League. How could it not be, with 14 titles they won putting them in the top position as the club that won the most titles. In the second position there is the name AC Milan with 7 titles followed by Liverpool and Bayern Munich with 6 titles. Actually there are still many names that have won the Champions League, but over time their performance has declined and they are no longer even considered in the Champions League.

For the team that managed to collect the most Champions League trophies, maybe Real Madrid is on top but in the last few seasons Real Madrid can't be expected to win the Champions League.
This season, seeing Real Madrid's progress improve, there is hope of being able to fight for the trophy again, even though Real Madrid will have to compete with teams from leagues like Mancester City.
Pep Guardiola is very excited or very sure that the team he coaches can win the Champions League again and this will make it difficult for Real Madrid when they will compete for the Champions League.

If you say Real madrid had a better performance it seems a little wrong and if you see after losing Benzema Madrid was not able to perform optimally to give a better performance than last season and I doubt if you really really favor Manchstr city even if only because of haaland but does not mean to have a guarantee to be able to get back to the champion league title.
This season many club have seen their performance decline in their domestic league competition, they look a little bad, but if for the champions league there is no certainty how this top flight club can perform even better.
But I just hope that every season there are always new clubs that can get champions league trophy like Arsenal.