The expectation from Kompany in his first year was to win the Bundesliga title again, and he did. That's what I meant. Of course, when the team in question is Bayern Munich, a Bundesliga title is a natural fit. Now, they need to advance beyond the quarterfinals of next year's Champions League campaign. The team may be a little less effective offensively after Musiala's serious injury, but if they continue to compete, why shouldn't they reach the Champions League finals again? They're likely to win the Bundesliga next year. The important thing for them is whether they can reach the UCL final.
When everything is good in the team, then the Bundesliga title is a usual thing for them, so they will be expected to achieve in the Champions League, but in my opinion Bayern with Kompany does not look like a team that will be able to win the Champions League. When you watch their matches, it seems that everything is fine, they attack a lot, but sometimes it happens that they score little, and Kompany needs to fix this. I think the main reason is that Kompany lacks experience, and he needs to progress, if he can’t, then he will be replaced.
What you're saying echoes my observations. I have to admit that their performance is good, but to win the Champions League, I don't think that's enough. They need to improve and be more convincing. Defending the Bundesliga is encouraging, but to achieve more (like winning the Champions League) they need to improve even more.
This is because the competition in the Champions League is much tougher, as all the best teams gather there and have to beat each other. They could certainly do that with more time together. This is Vincent Kompany's second season, so he should be able to improve even more.