Unless UEFA have suddenly changed the rules again, you're wrong. Up to 5 teams from a single country can qualify for the Champions League.
https://www.premierleague.com/european-qualification-explained
If City's ban does stick, then 5th will be a Champions League spot. If Wolves finish in the Top 5 AND win the Europa League, then yes, only teams in the Top 5 (excluding City) will qualify for the Champions League. HOWEVER, if Wolves do not finish in the Top 5 BUT win the Europa League, then they will qualify for the Champions League along with the teams in the Top 5 (excluding City).
If City's ban gets overturned, then just replace 5th with 4th and Top 5 with Top 4 above.