Hi there, and welcome to the GrapheneOS community!
It's true that biometrics like fingerprint unlock are less secure than a PIN or a password. It is perfectly possible to set up your phone without using biometrics, and to only use a PIN or password instead.
For many users the fingerprint unlock is still secure enough. After five fingerprint attempts on GrapheneOS, the user's PIN or password must be used instead to unlock: https://grapheneos.org/features#more-secure-fingerprint-unlock
A hash of your fingerprint, not the fingerprint itself, is stored on the secure element of the phone, and no apps or any web service have access to your fingerprint. To understand better the architecture for biometric unlock on an Android device, I recommend reading the AOSP documentation: https://source.android.com/docs/security/features/biometric