JeffBu It's clear the graphene installer wipes spyware from the application level down through the kernel, including even google play services [...]
GrapheneOS enables users to choose whether or not to install Google Play, which is a great feature of GrapheneOS. But please note that the GrapheneOS team spends substantial time and effort supporting users being able to run Google Play on GrapheneOS inside the Android app sandbox, including supporting an convenient installation process. That effort is not consistent with the development team regarding Google Play as "spyware".
JeffBu [...] but what about firmware? Does graphene reflash the radio, etc?
Yes. This is documented in the "Prerequisites" section of the installation guide.
Note that if the bootloader is locked the boot process verifies the integrity of the firmware at every boot, so it is unlikely that devices are running malicious firmware.