Following four straight victories, the Under-21s came into this encounter in good form, but fell to a goal in each half from the home side, who progress to the quarter-finals of the competition as a result.
There were three changes to the team that beat Derby County 2-1 in Premier League 2 four days later, with Alfie Fisken, Louis Page and Kian Pennant coming in for Jeremy Monga, Michael Golding and Josh King. But it was the Hoops who took the lead at The SkyEx Community Stadium, courtesy of a penalty on the stroke of half-time, converted by Harrison Murphy.
Lorent Talla set up Emmerson Sutton to double the advantage on 69 minutes, putting the game beyond City, who were unable to find a route back into the contest.
It's a quick turnaround for the side coached by Leon McSweeney, and attention turns back to PL2 on Monday, facing Tottenham Hotspur at LCFC Training Ground (7pm GMT kick-off).
The details
City: Bausor, Joseph, Amartey, Ali, Aluko; Braybrooke (Onanaye 46'), Cartwright (c), Page (Hill 80'); Fisken (Godsmark-Ford 78'), Briggs, Pennant (Wormleighton 67').
Unused sub: French.