The group stage is going to go on very comfortably for Real Madrid. We must have all understood it from their winning against Napoli away recently. That was technically the toughest match of the group. But even Napoli couldn't stop them in Naples. I can already be confident that Real Madrid will finish as group leader.
The important point is what they will do against the biggest title contenders. Especially against Manchester City and Bayern Munich I mean. If they manage to show a strong team performance with the help of their main scorer Bellingham too then I wouldn't be surprised to see Real Madrid adding another CL title to their collection.

This season I don't expect Real Madrid to add to their collection of Champions League titles. Real Madrid can certainly qualify for the round of 16, but I'm not so sure they can reach the final if they face tough opponents in the knockout round. Real Madrid could barely win the game against Napoli, they even had difficulty winning the game against Union Berlin. Imagine if in the knockout rounds Real Madrid had a better opponent, I think they would have failed.
But I agree that anything can happen. Real Madrid is the king of the Champions League with its collection of titles, but the doubts are always there this season because Real Madrid seems to have lost their attacking power without their best striker. Bellingham can certainly be relied on, but he can't always be the hero in every crucial match.
I think all clubs have their own strengths and weaknesses, and Real Madrid is no different. The best opportunity that Madrid management can use is the January 2024 transfer market, to recruit a number of new players to increase the club strength to make it more promising. Ancelotti is very ambitious about ending his tenure with various trophies before coaching the Brazilian National Team. With the depth of the squad he currently has, I think he can realize his ambition, even though they sometimes have difficulty winning, but what is clear is that they have handled it well so far.
At the top of the La Liga standings and Group C of the Champions League, it is a fact that Madrid deserves to be the favorite, because on the other hand, Man City, Bayern Munchen, Barcelona and Inter Milan are having difficulty topping two standings at the same time, I mean this list of clubs. Each also has its weak sides.