Well Real Madrid will still have the edge and they will be team that could possibly reach the final, but I don't agree with you that Bayern Munich lacks stability.
Bayern Munich will perform well when the last 16 matches officially start, they will be one of the strong teams fighting for the UCL title this season.
I agree with you. Munich is still considered one of the strongest teams in the Champions League this season. But I see they have no chance of becoming champions. The champion candidates in my opinion are Real Madrid and City. I don't know how the next round will be drawn whether City and Madrid will meet in the final or will meet in the next round because I don't know how this knockout system works. What is clear is that I think these two teams are the favorites to win the Champions League title this season.