When a team succeeds in winning any trophy which happens to be a major one, it's expected of the team to do their best in other to retain that trophy again. I'm football, it's believed that it's easier to win a trophy than to retain it because after winning a trophy, every other opponents you'll face in your quest to retain it will definitely know more about the tactics that helped you win which in response will do anything possible to stop you from conquering again.
Since the 2017/2018 season, there has not been a team that is as capable as Real Madrid. No team has been able to return to winning the UCL in a row. Only Bayern Munich and Ajax in the year have been going on for a long time. Bayern Munich winning in 1974, 1975, 1976 and Ajax winning in 1971, 1972, 1973.
Of course, with the arrival of stars like Mbappe and Endrick, I think Ancelotti is trying to defend the UCL Title. With a good financial condition, Madrid has a great opportunity to build a stronger team for next season.
Madrid has a great opportunity to defend the Champions League trophy next season, Ancelotti fleet has the complete attributes to make it happen, even Los Blancos has the potential to create an unbeaten record throughout the season. Not only in the Champions League but also in La Liga and in other competitions. Zidane managed to lead Madrid to win the trophy three times in a row, Ancelotti has the opportunity to repeat this in the next two seasons.
Meanwhile, next season favorite teams don't seem to be much different from the previous season, where Madrid was at the top of the list, followed by City and Bayern. I think Dortmund, Arsenal, Inter and several other teams are also worth considering, as well as the surprises that might be created by newcomers like Leverkusen. However, in terms of strength, City is probably the closest to Madrid at the moment.
Ancelotti is the manager who has collected the most Champions League trophies at the moment, it has been proven that his magic is still very effective if he manages the right club like Madrid. We'll see if Ancelotti can do it again next season with a star studded squad.