Manchester City won the Champions League title in the last season and obviously, that's a good reason to say they are the favorite team for the tournament even during this the season but the fact about Manchester City and Pep Guardiola is they lost some power. Manchester City sold some players and they couldn't spend money and buy better players like other teams did during the summer and that's why I think other teams like Bayern Munich will have more chance of this.
Yes, Man City is one of the favorite teams to win UCL trophy because they are the winner in the last year. But they are no longer the Man City as in the last season. Man City becomes weaker if we compare their strength in the previous season. That's why Man City experienced some losses lately, they have a weak area in their lineup. It is true that some players of Man City moved to other teams. They ruined the expectation of Man City management.
But defeat in the Local League did not have much impact on their performance in the Champions League and Manchester City managed to record a perfect win in the Champions League so far, they also have high goal productivity with 12 goals in 4 matches this means that Man City remains a threat to opponents.