The entirety of season 3 debunks this idea. That season revolved around someone undestimsating the young cat, and playing old school games that worked 'back in the day' and being surprised that Marlo was ahead of that shyt.
I would say Avon didn't truly get hip to who he was dealing with in Marlo until Marlo showed up to his fukking trial to watch him get sentenced like
And sure, Avon reworked his connections and established a strategy to retake some power, but that wasn't a day-1 thing. He took L after L after L, many of them because of his arrogance and not taking Marlo seriously, before he dusted himself off and restablished what the King was supposed to be.