I'd like to say first of all that I've been very critical of us this season and of Glasner, it's been one of the worst seasons for a while as far as I'm concerned.
However, I think that thus far we have played teams far below the pedigree we are used to in the PL and the likes of Larnaca have essentially just provided us with numerous FA Cup 3rd round David vs Goliath matches (we did lost the actual one vs Maccs. and to Larnaca at home). These games are not easy at all and when you have a number of them, odds are a few will throw up unexpected results.
I think the reason we remain favourites is that despite it being ugly, hugely frustrating, unconvincing etc we were always likely to progress through and as the quality of opponents increases in the KO fixtures, and we play over two legs, we are backed to have slightly more (quality) than those we'll be coming up against.
I'd suggest that's why, not saying I am correct.