So after a bit of tinkering I was able to get it to sync perfectly with GrapheneOS! The only drawback which I am sure most people who use this OS won't accept is you have to provide a lot of permissions to Google Play Services in order for the watch to activate and function. It's a beautiful piece of hardware and I was able to add a credit card to it. I have yet to test whether or not I can successfully transact with GPay, but I will report back when I know for sure. Only thing I haven't been able to do is activate LTE service on it. I will be patient for now since I am not the only one with that problem (there is a Reddit thread about it already) with a "Server Error Encountered" message.
PS - I just made the switch from Stock to GrapheneOS last night on my Pixel 6 Pro and I LOVE it! This is hands down the best Android experience and loosening the grip Google has on my data is so satisfying. Thank you for the amazing work devs!