Real Madrid has not fully emerged from its difficult period, some of their main players are still injured even though Ancelotti can utilize the existing squad to show the team's best performance and achieve victory.
Real Madrid is the king of the Champion League, this team is highly respected and always favored, they are very strong when in the Champion League match but in the new Champion League format now everything will be different and some teams have also developed rapidly so that the competition for the championship title will be much fiercer, in terms of percentage I don't really put Real Madrid in a high percentage not because of their declining performance but because other teams are also stronger this season.
They have what we can call "good enough" though, and that's basically it. Sure they are still having hard time at right back, because they didn't consider Carvajal closing up the whole season, so they literally lost their entire right back, and have to deal with bench right back, and do not have a third one ready, they couldn't be possibly ready for something like this, sure could do with like a month off, but the whole season part is the hard part. But aside from that, rest seems like it's fine.
While centre backs Militao and Alaba is gone, which makes it hard for that position and of course they would rather have them, it is not as severe because they have Rudiger and some other players testing out there, like we have seen Camavinga even play there. So I think they are fine, midfield and offense is already the greatest s other are no issues there at all. I think aside from right back, they are just fine and they are not worried about much anymore because of that.