Johnnyloans I don't think there is any conflict.
My understanding is that the upstream single Private Space does not (at present) have an install-applications toggle; upstream, only regular/full secondary profiles have the toggle. Perhaps someday the upstream single Private Space will have an install-applications toggle.
My understanding is that the GrapheneOS change allows each regular profile (owner, secondary) to have a Private Space, and that these multiple Private Spaces, like the upstream single Private Space, don't have an install-applications toggle, so all of the Private Spaces are working as intended.
Issue 6066 has been re-opened, which suggests that the team is considering changing the behavior of Private Spaces. But honestly in this sort of situation often waiting a while results in Google resolving the issue upstream.