Real Madrid lost their two pre-season games against Barcelona and AC Milan. But that doesn't mean that Madrid's dominance has collapsed and they are in bad form. Real Madrid already have a solid squad so I don't think they need to prove anything in pre-season games. Even Real Madrid only played their bench players or their young players in pre-season games. We will be able to see how strong Real Madrid really are in the UEFA Super Cup against Atalanta. I favor Real Madrid to win that game.
Big and strong teams like Real Madrid and Man City, they no longer need to prove anything in pre-season. Apart from just testing their players and assessing young players by giving them playing time and so on. So the focus of big clubs is not on winning but they are focused on analyzing the performance of young players or reserve players who they can take into the main squad. So don't be surprised if big clubs experience defeats in pre-season matches. But for a team like AC Milan they need to test their depth and performance in pre-season. Moreover, they have a new coach. So pre-season matches are very important to test their performance in preparation for this season. So it's not surprising that AC Milan played quite well even though they didn't have all their main players. And yeah that's pretty good news for AC Milan because it seems they have brought in the right coach.