PSG is basically bad at competing in the Champions League, so the reason Bayern Munich is favored to win is very reasonable. It's notjust about the depth of the squad they have, but based on PSG's history in the Champions League, the fact that PSG still gets bad results. After all, when PSG still had Mbappe, Messi and Neymar, and the fact PSG still failed to get good results in the Champions League. So, it is no longer about players and coaches, but their performance and also their results so far in the Champions League, so it is very natural and reasonable that Bayern Munich is the favorite team to win, moreover Bayern Munich will also play at home.
PSG used to be bad at knock out phases in Champions League but it's a first season after many year, they're playing very terrible at a group phase. It's not because UEFA changed the format of Champions League and it's a first season with these big changes. Two recent seasons, PSG changed their transfer strategy and they no longer are ready to spent huge money for purchasing a star player.
The departure of Messi, Mbappe, Neymar affects their attacking system and this season shows it clearly. Their midfield especially defense field, are their main weaknesses in this season too. If PSG fail to go through a group phase, this season is a serious failure for their club. It's unacceptable to see a rich club with high ambition to win Champions League, has to return to a domestic league after failing in Champions League group phase, too early.