Liverpool is among the clubs that have dominated the UEFA Champions League competition, and I can't forget their great comeback against AC Milan in the UEFA Champions League finals in 2005. Liverpool's performance last season was due to their late injury, which affected their performance in all competitions. For the past 5 years, Liverpool has been performing well in the UEFA Champions League competition, and I don't see them as people who can't compete in the UEFA Champions League competition. The Liverpool squad is okay, and if their new coach deploys a good tactic that will fit the current Liverpool squad, they will be a threat in next season's UEFA Champions competition.
In terms of strength, of course Liverpool will be quite wary of their opponents next season. Apart from that, in terms of experience, of course Liverpool is a team that other teams should be wary of. But experience is no longer a benchmark because AC Milan is certainly more experienced but they are not very strong in several seasons so AC Milan is often eliminated early from the Champions League.
So next season, the stronger teams will have the potential to go further into the next round. On the other hand, Real Madrid and Manchester City are quite great teams, they have good players and great coaches, so it is quite natural that Real Madrid and Manchester City are still very favorites to reach the final in the Champions League next season.