If Manchester City wants to win the UCL title this season, the only way is to stop the steps of these three clubs, Madrid, Munich and also Inter Milan, which might be a serious threat to Manchester City, as we saw last season that Manchester City beat Munich and Madrid to achieve last season's UCL final, finally beating Inter Milan in the final, that's what enabled Manchester City to win the title this season. so they have to be able to get rid of the strongest clubs before thinking about becoming UCL champions this season.
I doubt with Bayern Munich is difficult opponent team for Manchester City defending their UEFA Champion League tittle, had bad performance in domestic league and losses on first leg match on round of 16 I doubt with Bayern Munich has opportunity for qualifying to quarter final or stopping Manchester City for winning Champion League tittle. I see Real Madrid and Inter Milan is two top teams will make difficult for Manchester City to be Champion League winner, both teams had consistent performance in domestic league and Inter Milan one step closer will be the Serie A winner and most focus for playing in Champion League.
I want to see in quarter final round the top teams such as Madrid, Manchester City and Inter Milan not face each other early before semifinal or final stage round. Most ideal and final dreaming of UEFA Champion League season 2023/24 between Real Madrid vs Manchester City regarding both teams have quit well performance.
I also share the same sentiment as you, I really don't see this current Bayern Munich as a threat to Manchester city quest for this year champions league glory, I expected arsenal to be in the mix because I think they will be more of a threat to Manchester city than this Bayern Munich you are talking about.
Another thing is that, I mentioned arsenal because, since it's a team of same league, they knows Manchester city the way Manchester city knows them, and if they are being pared against each other, it will be more difficult for Manchester city compared to this Bayern Munich team, if they can actually progress past fc Porto in the reverse fixture in the round of 16 match between them.