Actually, there are 3 favorite teams to win the UCL trophy. We have Bayern Munich besides Man City and Real Madrid. We don't forget that Bayern Munich is also a strong team and they often has a good history in UCL. It is very unfortunate that among these teams, 2 of them must fight in the current round. People expect that those 3 teams will be in the semi-final round at least.
Bayern Munich, this season is completely in shambles. I don't even think they will go past Arsenal if the form turns up on a good day. Real Madrid has to tussle it out with Manchester City, whoever wins in that match is most likely reaching the final and probably winning this year's title.
I am also surprised that he mentioned Bayern Munich as among the title contenders. It is right to believe that everyone that qualified to the round of 8 is a title contender. But for Bayern Munich under Thomas Tuchel, I have never regarded them as being formidable. I believe the club is lossing that aura of German Machine in them. The Bundesliga title they won last season was just narrowly stollen from Dortmund and from that time there's no significant improve in their play style. Even if Bayern Munich will struggle to go past Arsenal, which I am not sure, they will likely not succeed in the next round.