de0u But first it's important to figure out the exact desired behavior.
In order to do that, i believe one must have a thorough knowledge of how things work backend-wise, which admittedly I do not possess. Hence why proposing a new thread under development or a github issue was made, to bring it to the attention of those who do. Please keep in mind, that my answers below are based on an assumed understanding of the concepts, and thus ultimately have little more value than speculation.
de0u I think part of the problem is that, I suspect, if 5G is disabled then the cellular modem doesn't even scan for it. If so, then the dialer can't tell whether the issue is that 5G is disabled or that there is just no coverage.
The proposition would be that if '4g only' is enabled, there would be an alert to the end user if 4g calling is not available. So the first requirement of the check would be, is 4G only selected? If so, does it really matter if 5G is disabled? The coverage part is a very good question, and that's where i certainly lack knowledge. I assume there are 2 scenarios;
1) 4g only selected, 4g calling not available, so no connection to a 4g tower possible, hence meaning no coverage (however in both my case and op's case, we had LTE data still accessible, just 4g calling didn't work.)
2) 4g only selected, 4g calling not available, the phone connects to a tower, tower responds to downgrade to 3g (or switch to 5g, 2g) in order to make a call since 4g calling not available at the moment. Phone rejects request since 4g only is selected. Theoretical in that case is assume the distinction could be made between 'no coverage' and '4g calling not available'. I'm not sure how or if that data could be interpreted/catched in the dialer from i assume the baseband modem?
So hypothetically, if '4g only' is selected, and scenario 2 applies, and it is possible to interpret that data backend-wise (rejection of downgrade to 3g, or switching to another protocol), at that moment an alert could be given that 4g calling isn't available at the moment, with a possible 'culprit' of 4g only selection.
If scenario 1 applies, i'm not sure if backend-wise, data is available if there is connection to a tower. If so, and there is no coverage, i suppose the alert should not be given. I remember when i had this issue, from withing the dialer, i could initiate a call, but would be abrupted before first ring (if that makes sense). I've tried replicating what happens if i call somebody with no coverage to see the behavior in the dialer, with airplaine mode, and the dialer doesn't even start. This probably is because of a check within android and has nothing to do with no real coverage, however i don't have a faraday bag and can't really replicate what happens withing the dialer if there is no coverage. Now that i think of it, since i had this issue a while ago, it might actually showed a short popup alert in terms of something like (calling not available), but i'm unsure. Maybe op @stkr can verify/deny this while it is still fresh in mind.
de0u If would not be impossible for the dialer to prompt in cases where 3G and 5G are disabled by "LTE only", but should it also prompt if 2G is disabled?
I could have a complete misunderstanding here, forgive me if i do, but if 4g only is selected, isn't 2g, 3g and 5g disabled anyway? It should only prompt if 4g calling is unavailable.