Mikel Arteta will probably face strong pressure because they also have to continue to perform well in the English Premier League. If they make the wrong strategy they will fail in these two competitions and that will certainly be very disappointing because last season they failed in the English Premier League as well as in European competitions even though It's not the Champions League, but I still doubt Arsenal will be in this competition and my prediction is that they won't make it to the semifinals.
I am very doubtful in terms of head to head because Bayern Munich is too strong for Arsenal, is it possible that Mikel Arteta will give resistance to Bayern Munich, with the tactics he has because Arsenal is not that strong to face Bayern Munich, it is likely that he will have difficulties when playing at home Bayern Munich, we know that the Allianz Arena is a scary home for the clubs that play there, so it is not surprising that every club will experience defeat there.
Arsenal's previous Champions League encounter with Bayern Munich didn't end well. But this time, it's a different Arsenal. We should leave the past behind and focus on the opportunities presented by manager Arteta. While Arsenal fans might have their doubts, playing against Bayern Munich at home is a tough challenge. Arsenal is in good form and can beat any team, but as you've said Bayern is also formidable, especially at the Allianz Arena.
Arsenal is one of the powerful teams in England but it's rather unfortunate that when they face big teams from other leagues, they hardly win those big teams and most of the time they are always at the losing side. Arsenal have made some improvements both last season and this season but believe me that Arsenal can not be able to withstand Bayern Munich because looking at the both teams previous meetings, Arsenal is mostly at losing side and now that Bayern Munich looks like they have lost hope in the Bundesliga title, they will take this champions league more serious than Arsenal who is topping the premier league table and at an advantage of winning a trophy despite the tension amongst the top four teams in the premiership.