red flags to me:
Michigan's CB's still suck. Vincent Gray and Germon Green are not B1G caliber CB's. The only time any of Michigan's CB's are any good is when they line Dax Hill up at CB. They should seriously just stop moving Dax Hill around and make him play CB full-time. RJ Motten and Brad Hawkins have both shown enough at safety to make Dax Hill move to CB permanent.
Michigan's passing game still sucks. Not sure how you fix this. The play-calling is ass, loss of Ronnie Bell is huge, and McNamara is a game manager- not sure he's the type of QB that can take a passing offense to the next level.