Can you make a distinction between best and most competitive?
When I see Bayern's team I would not even say they are the "best" team - but when I see how they work with struggles and how they are able to "comeback" right in time and work together in big moments that makes me really confident that they can rise for the big occasions. Like Saturday - they lost Davies through a red card and that triggered "the monster". You could say that was just Stuttgart who has a very good season but with a lot youngsters - but we have seen that times and times before against better opposition - this season especially when it seemed that the team needed to wake up first before they put 2 gears up. There were times in this season where they struggled - but that was after the Supercups (only a short holiday, one week preparation and then some matches in a very short period) and after returning from the club world cup when they additionally to all the stress missed Müller who is the one that plays the role of a drill master pushing the others to their limits.
If that "competitivity" would not be there I would say that City is a clear no. 1.
But you cannot predict the future outcome. If Bayern's players are physically fit and the most important players stay healthy there is big chances for them to win again. Now - mid/end of March the offense is in top form (Gnabry back into goal scoring, Sane arrived, there is still Coman who has an edge for decisive goals - and we do not need to talk about Lewy and Müller) - the midfield two, too - Pavard, Alaba and Davies seem to be out of the slump they have been in the first half of the season - and with Coman, Hernandez, Süle, Martinez and Musiala atleast some decent players to substitute in. And the balance - that depends a lot on the fitness of the players, too, in the system they play - is better again now after some weeks with less matches because of being out of the cup and more real training.
But there is a lot Ifs in that...
In the most aspects your team is no. 1. But question for the CL tournament is who rises better to the occasion.
Some things look easy - but they always look easy no matter against which opposition when the opponent loses the ball in occasions that he should not or does not expect, too. And it is "an art" to trigger that.