On paper scaling logic:
Malistaire is more powerful than the Jade Oni, who is a powerful demon. Less powerful than people like Morganthe. I assume Ambrose is around Malistaire's level, most likely weaker.
Dumbledore is more powerful than Voldemort, and scales above every wizard. Gandalf is an angel like being who fought the Balrog who's clearly above rest of Fellowship. Loses to weakend Souron though and loses to Saruman who suposedly couldn't fight through the Ent army (not that theirs indication that Ambrose could).
Fighting styles
Harry Potter magic is a very soft magic system, lacks restrictions which gives Dumbledore alot of versatility. Lord of the Rings magic also feels arbitrary but it's different than LotR's in that it feels more realistic and mysterious, hard to define his capabilities, less combat versatility. Gandalf is also clearly the best melee fighter.
Wizard101 wizards need to build up their pips to do their big attacks and than need to take a break before they can do their next attack. I assume Ambrose is well versed in several schools. This team should have better healing.
Considering that Malistaire is only a boss for the 1st story arc and is beaten by students (oh actually, he didn't get defeated, he was convinced to stop fighting) I think Dumbledore who's the most powerful mage of the verse could win. So I'm going with team Dumbledore/Gandalf.
Morganthe and Undying Malistaire would likely win though.
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