Arsenal still has the same problem, they sometimes get difficulty to maintain good performance. They are still playing inconsistently in few matches.
Yeah we are still waiting for Arsenal in several important matches so far Arsenal is the most consistent team in the Premier League with 8 consecutive wins, the question is whether Arsenal can do it until the end of the season? as you said maybe Arsenal want to prove that they are currently with a different squad and don't want to miss any opportunity like last season. Anyway, the match on March 31 will be a determinant if Arsenal want to prove something then they have to defeat Manchester City.
Manchester City as a home team certainly does not want to lose points and don't want to lose the opportunity to win the title they will make every effort to get closer by playing all the mainstay players especially Manchester City as a favorite team as the winner based on bookies predictions. What is clear is that this fight will be interesting and we want to know who will win.
Eliminated from the FA Cup, Liverpool still has a chance to win titles in the Premier League and Europa League. At the Premier League playground, Liverpool can return to the top when Arsenal clashes with Man City in the next round. They are still considered the number 1 candidate for the Europa League championship this season.
Regarding the Arsenal team, as you said, they have difficulty maintaining their form. If they win against Man City, they will prove their bravery. But it is challenging to do that at Etihad Stadium.