No, this is regarded as a decent, if not spectacular Brazil side. Not 2002-2006 levels, but much better than 2010-2018.
Of course England are 2nd favourites, just look at the squad they have. Just like with France, the problem with them is how shit their managers are.
Argentina are probably the best side at the moment, so it's no shame losing to them.
If it was based on bets, Germany would be 2nd favourites because they're Germany and they have Hansi Flick, but everyone realises their squad is utter shit and no manager can change that.
Odds don't tell the whole story, but they do mean something. Brazil and Argentina are the favourites by far in the tournament. England and France should've been there too, but their managers are completely useless.