I ended up using my existing Google account for Sandboxed Google Play on a 2nd profile. The 2nd Profile contains only the apps which absolutely require Play Services. They do not get permissions for sensors or location. Time spent on 2nd profile is strictly limited.
Do you compromise your privacy this way? Technically, yes, but it may be negligible. I don't use Google for anything except for this Google Play profile. Technically, Google knows that some random user from a deceptive IP uses those 5-6 apps for 10 minutes a day. They don't know the device's identity either, since IMEI tracking is blocked on Graphene by default. This is almost entirely useless for profiling purposes. In my Google activity protocol the sessions are listed as random Linux devices logging in. I am using a Pixel 6 Pro in reality.