You're right. Although Man City performance is decreasing significantly in the last few matches, Man City should be one of the strongest candidates to win UCL. Man City has good squad and Man City has a smart coach, they has good experience in UCL as well. There should be no doubt about the chance of Man City to win the UCL trophy. Or they probably reaches the final round at least.
Honestly, the results that Manchester City has gotten recently are very bad, and that shows their performances have dropped seriously. Nobody ever expected this kind of drop in performance from Manchester City based on the quality players they have and the manager.
Some people are saying that Manchester City's performance has decreased significantly because Kevin De Bruyne and Rodri have been absent recently from the squad due to injury. However, even with that, I didn’t expect Manchester City’s performances to drop like this. Seriously, I expected a big team like Manchester City to always have replacement players for any of their players who get injured.at this moment, with Manchester City’s performances, I can say that they are still the favorite team to win the Champions League or at least reach the final. If they quickly get back to their form, it may be possible, but I can’t say that for now based on their current form.
I believe Man City will still be one of the candidates for the Champions League. We can see the situation will start to improve for them. Some bad performances must be resolved soon. Pep will always have a way to win the game. The Champions League is one of the titles that will be Man City's target this season. They have not lost their chance even though their rival Liverpool is currently in great form. We will see until the first round is over.