Real Madrid is a very strong team. Every player in their team is performing very well. But I don't see any chance for them in the Champions League. In some matches, they are ensuring defeat due to their own mistakes.
I also think that Real Madrid is definitely not among the big favorites to win the Champions league this season. Other teams like Manchester City, Paris saint germain or Bayern Munich just seem to be way stronger. I also think that this not really mean that much though. Just remember what happened in the last season. Back then Real was in a wad worse shape than they are in this year and still they have managed to win the CL back then. There was a lot of luck involved, but still.
Real Madrid are in a difficult situation that I think it won't be possible for them to win the Champions league. I don't think it will also be possible for Manchester City to win because Manchester city performance is not as good like it used to be before. The champions league competition is between Bayern Munich and PSG, this two teams still remain consistent in their performance this season. This might be a chance for PSG since Manchester City and Real Madrid are not in their best form.
Everything you said is right now, but it doesn't really mean much, as previous seasons in the Champions League have shown.
PSG and Manchester City have invested the most money in their teams in recent years, but still failed to win the Champions League, even though it has been their primary goal for many years.
On the other hand, the Champions League was won a few seasons ago by Chelsea, who was not a strong candidate for the title for anyone.
The Champions League is the biggest and best football competition in the world, it lasts for a year and is very tiring and uncertain.
The Champions League is not won by the team that has the most expensive players in its team, but by the club whose players are the most physically and mentally ready for the title.
Chelsea or Real last season are the best examples for this claim.
For me, Real is still a very serious candidate for the new title of Champions League winner, regardless of the current slightly weaker games.