The big factor here is that Inter still has a 2nd leg to play against Atletico Madrid. They're only one goal ahead and are playing an away game which is never easy. In contrast, 4 teams have already qualified, so it's not weird at all that odd-makers are giving them higher chances. It's still impressive that the odds for Inter are lower than for PSG, who already advanced to the next round.
It'll all change next week. Inter is doing really well in Serie A, and it's almost certain at this point that they'll win it. But I still think Man City is a better team, they are very consistent in the toughest league in the world.
If you look at the performance of the two teams in their respective leagues, Inter Milan's chances of qualifying for the next round will be much greater, even though the match will take place at home to Atletico Madrid. But Inter Milan also have to be wary of Atletico Madrid, apart from being experienced in the Champions League, another advantage is that the match will be held at home. I don't doubt Inter Milan to qualify for the next round because they have a good defense so it will make it difficult for Atletico to restore the goal aggregate more quickly.
I put two to three top teams this season in the Champions League, apart from Real Madrid I have confidence that Bayern Munich is a strong candidate to win this season. Of course, we don't ignore Manchester City as the defending champion, but there is an opportunity for competition between the three clubs to compete for the title.