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The Champions League is their league so even if they are not focused winning the champions league shouldn’t be much of a problem for them but they are not a team to lose focus especially not under Ancellotti who has won almost every trophy with them now. I don’t think Madrid will prioritize the Champions League over any other competition, they will want to win everything all, anything they can get their hands on.
I disagree with you who say the Champions League is Real Madrid League, it would sound more beautiful if you said Real Madrid is the king of the Champions League based on the trophies they have won. This is a competition, all teams that qualify for the Champions League have a chance to win the trophy, who can guarantee that this season Real Madrid will win the Champions League again.
Real Madrid performance under Ancelotti has improved dramatically, but that doesn't mean they can't be knocked out of the Champions League. Other clubs have used the transfer market to strengthen their squads, perhaps we will see a new champion this season.