Goals from Timo Werner and Pape Matar Sarr put the hosts in control in this Round Four encounter in the capital.
Matheus Nunes produced a fine finish in first half stoppage time, raising hopes of a comeback by Pep Guardiola’s Blues but we couldn’t find a leveller in the second period to force penalties.
Despite the disappointment of defeat, there was a proud moment for Youth Cup-winning captain Jahmai Simpson-Pusey who came on for his senior debut, joining fellow graduates Nico O’Reilly, James McAtee, Rico Lewis and Jacob Wright on the pitch in the second half.
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