At this point, I honestly believe that City should not care about UCL at all this season. It is not going to end up with them winning it, we can see that and know that, and going any further would give them just a smaller amount of money that they do not need, they are already a rich club. So, it would make more sense if they could just end up with a better return without having any of these issues.
I believe that we are going to see something great here, something that benefits everyone, and that will not be all that easy to recover if they focus on UCL too much. Ignore UCL, and focus on EPL and try to be in the top four at the end of the season, that is all they should be caring about at the moment.
The problem that Manchester City is currently facing is very complicated and also wants to surprise when in the last 4 seasons they were actually very good and in a very short time they finally declined drastically. It is very natural when they focus on the Champions League, because this is also the biggest competition they play, apart from the English League. But what you said is also true, when their focus is divided then it will make them need a long time to recover. while in the English League itself they are still very difficult to get a win after experiencing a decline.
None of us have been able to identify the problem of Manchester City yet. The team played great last season. Even at the beginning of this season, Manchester City's performance was quite good. Manchester City was at the top of the table for a long time. Suddenly this team has lost its traction. And has started performing poorly consistently. We do not know why Manchester City is suddenly performing so strangely. Guardiola is trying his best to stabilize Manchester City. But Manchester City's performance is still very bad. Manchester City has won only one of the last 5 matches. We can see the poor performance of the players in both defense and attack.