They are currently performing slightly better than Manchester City's performance, but I still feel that their performance is not enough to do well in a tournament like the Champions League. Manchester City and Liverpool are not the favorites for the Champions League this season, but these are the teams we have talked about the most in other seasons. Manchester City management may not have realized that Manchester City performance will be so bad all of a sudden. Sometimes injuries to some players and some players leaving the club have a bad effect on the club. Manchester City need to improve their performance and perform better in their upcoming Champions League matches. If they can improve their performance then maybe they can finish the season in good position of Champions League.
Manchester City is not favorite for this year's UEFA Champions League but Liverpool is a favorite team for this year's UEFA Champions League. You said that Manchester City and Liverpool are not favorites for the Champions League, maybe that is wrong. Because everyone probably knows how great Liverpool are currently and they are probably the best team in the Champions League. However, Manchester City is performing much worse than Liverpool. Some important players of this team are not in form and also some players are injured, the recent performance of this team is not favorable at all. Manchester City have won just two matches in UEFA Champions League at the moment. Maybe they will face a strong PSG next.