Arsenal must now play a second leg against Bayern in March, but the contest is already over.
Granit Xhaka, who has been suspended domestically, returns to the squad as does fit again defender Per Mertesacker.
He was a key figure with 13 goals in 31 games when Bayern became the first German club to win the treble of European, domestic club and league titles and won the Bundesliga with a 19-point margin.
He added: "The performance in first half was good". Still in play, though, is the Champions League quest.
"We play against a Bayern side who for every year the same task is to win the Champions League", Wenger said.
Two goals from Thiago and one apiece from Arjen Robben, Robert Lewandowski and Thomas Muller did for the Gunners in Germany on Wednesday, leading to Rio Ferdinand labelling the away side "spineless".
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In their last meeting in Munich, Bayern routed the Gunners, 5-1.
Arsenal, to their credit, have come to the Allianz Arena and picked up a victory in the past, even if that win proved to be not enough as they produced another one of their many glorious exits from the last 16.
Ancelotti believes Wenger should be praised for the job he has done. Wenger's Arsenal saw off Ancelotti's AC Milan 2-0 on aggregate.
Bayern have not clicked this season.
"What I would say is Arsenal have got it in the making to be a really good counter-attacking team because you need pace and ability to be able to do it and they have got that". Their star men have struggled to deliver to their usual high standards, although they obviously still posses a lot of quality.
"I do not look for excuses", the Frenchman told reporters.
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He'll have some help, as Mohamed Elneny, 24, is back after playing in the Africa Cup of Nations.
"This guy is a victor and a champion, so I have no doubts about him", added Ancelotti of Muller.
"It's true that it's not always easy but it's important that you feel happy".
Arsenal shipped three goals in 10 minutes and all within 15 minutes of losing captain Laurent Koscielny to injury, and a downbeat Wenger admitted after the game his side had become "vulnerable" as the night progressed.
'They can put reserves out next week and save the first team for Premier League because this is well and truly over, ' he said.
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Apart from Beyonce , there will be performances by Adele, a duet with Lady Gaga and Metallica , Katy Perry, and many others. CBS Network which will broadcast the 2017 Grammy Awards will air "Red Carpet Live" on television starting at 7:30 p.m.