There's no reason for Madrid to underestimate Bayern.
They have always been one of the most dominant team in the UCL in recent years so caution would be employed while playing them no matter their form.
Indeed. Real Madrid can't underestimate Bayern Munich although this team is in bad performance in their domestic competition. Bayern Munich is surely a strong team in UCL, they even always becomes one of the favorite teams to win the UCL trophy. Moreover, Bayern Munich has no hope for domestic trophies, they will focus on UCL now. I'm pretty sure Bayern Munich will play all out, they won't care with the possibility of injuries or anything. Reaching the final UCL and win the trophy is their main priority now.
If you look at the statistics, maybe Madrid is far superior to Munich, but the previous season and the current season are clearly very different in terms of strength, that's why it's hard to underestimate one of them
The stats of previous matches can't determine the result of the next match. Although Real Madrid often won against Bayern Munich, it is not impossible that Bayern Munich can defeat Real Madrid in this season. However, Real Madrid is still better than Bayern Munich if we consider the current performance of these teams.
I hate the fact that Real MAdrid dominance is super big, but also i love their spirit and how they play in this tournament. In no other tournament or league we see this thing, because is not only the dominance is also how is the dominance and is always like a magic thing, how they do that.
Why you hate it? It is even more interesting if Real Madrid is very dominant in UCL. Other teams will be motivated to end up the domination of Real Madrid in UCL. The domination of Real Madrid isn't only caused by the luck or magic factor, you must understand how strong this team. Perez always builds Real Madrid with skillful and star players.