~snip~
Manchester City is not favorite for this year's UEFA Champions League but I think 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 well Liverpool have performed at the moment 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 good form and also some players are injured, so the recent performance of this team is not favorable at all. According to the statistics of Manchester City's matches in the UEFA Champions League at the moment, they have won only two matches. Maybe Manchester City will face the powerful PSG club in their next match.
Everyone has the freedom to choose who is the best team and their favorite, for example if I am big fan and so fanatical about Barcelona then whatever happens and whatever the conditions are as long as Barcelona still has chance then clearly they are the most favorite team, for now I think everything is still the same because the competition is tighter and more competitive when it enters the knockout system in the last 16 and so on until the final.
Manchester City can also still be team in the title race, it is too much to judge everything from now on and it is better to see it later when it has entered the quarter-finals because in this phase we will really see which team is worthy and really strong.