Although Man City is still playing in three competitions, this will not distract Man City's focus when playing in the Champions League. Man City are an experienced team, so they already know how to keep their main players fit for many competitions. So I think the chances of Atletico beating Man City are very slim. there is even a possibility that Man City will win against Atletico easily. Although I also know Atletico are not a weak team, but after all the quality of Man City players is very far when compared to Atletico. So it is very difficult to expect any surprises that Atletico will show when facing Man City.
I do believe that league is a very important title for them, probably the most important one even though they are still in UCL, because premier league pays so much that it is nearly as much as UCL and it is their national one. FA cup however is not really that important, I mean it would be good to have, but it is not like a must at all, Liverpool and Klopp known to not even play their best players there.
So, the only titles City should care about is premier league and UCL, which will be hard to achieve. UCL is very ruthless, we have seen what happened to PSG, they were a great team and 5 minutes of being bad caused them to get eliminated. Which is why they need to focus on that a lot more. League could have recovery, UCL won't have that.
I agree that both Man City and Liverpool would consider the FA Cup to be not a top priority, they are prouder to win the EPL trophy and
the Champions League trophy. Therefore, Guardiola as the coach of Man City must plan well, so that Man City can win the EPL trophy
and the Champions League trophy. But when compared to the EPL trophy and the Champions League trophy, it seems that Guardiola will prioritize
the Champions League trophy. Because so far Man City have never won the Champions League trophy, Man City's best achievement
in the Champions League competition only managed to become runner-up in the 2020/2021 season.
Therefore Man City will make sure they win the game against Atletico, because like you said in the EPL there is time to recover if they lose,
because there are still many matches to play. Whereas in the Champions League competition there are only two legs as a determination to
qualify for the next round, and Man City must succeed in achieving positive results in those two legs when they face Atletico. So Man City will focus
more on beating Atletico, therefore it will be very difficult for Atletico to beat Man City who are really focused on the Champions League.