The former City defender watched our Wembley clash as part of our We’re Not Really Here coverage, as our dreams of a domestic clean sweep were dashed by Hakim Ziyech’s second-half strike.
But with a Carabao Cup final against Tottenham and a Champions League semi-final showdown with PSG on the horizon, not to mention a Premier League title tilt, there is still plenty for Pep Guardiola’s men to focus on.
And while Dunne admits Saturday’s performance didn’t quite reach our usual heights, he believes the players will react positively to the setback.
He reflected: “It’s not what we expected or are used to seeing.
"As the manager says, it’s almost impossible to win four trophies because players can have an off day, they have a day when they’re not quite 100%.
“Today it was a bit flat, but there’s so much to look forward to.”
Our former skipper also gave credit to our opponents for a disciplined performance, as they made it 13 wins out of 19 matches in all competitions under the watchful eye of Thomas Tuchel.
While City gave our all from minute one, Chelsea defended from the front with real organisation and tenacity, while also possessing a dangerous turn of pace when in attack.
Although Dunne gave a nod to the way Tuchel set up his team, he also highlighted the cutthroat nature of knockout football, where even just one bad day at the office can be punished.
“We had an off day and unfortunately it’s in a cup competition,” he said.
“With that comes elimination and with it the hopes of winning four trophies.
“Chelsea put a lot of bodies in the middle of the pitch, they have a strong group with (N’Golo) Kante in there.
"Credit to Chelsea, they are building a squad and in (Thomas) Tuchel they have a manager who knows how to win trophies.”
We’re Not Really Here is available to watch across all our digital platforms whenever Pep Guardiola’s men step across the white line.
Coverage kicks off one hour before the match gets underway, before resuming at half-time for a brief summary of the opening 45-minutes.
At full-time, our special guests will share their thoughts on the action and, time permitting, we will also hear from the boss and a player.
Unashamedly City-focused, it’s the best way to enjoy the matchday from home!