If you're referring to the setting in Apps > Sandboxed Google Play > three-dot menu > Configure Play Store updates, then it's expected. This setting only controls whether the Play Store can update to the latest versions independently. If it's disabled, it stills auto-updates to newer versions that have been tested, as defined by GmsCompatConfig, see here: https://github.com/GrapheneOS/platform_packages_apps_GmsCompat/releases.
I'm not sure that there is a way to disable Play Store from trying to automatically update itself and Play Services. You could revoke the permission to install apps for Play Store but it will still try anyway.
I dont want to update Play services and Play store via playstore since i had issues doing it previously
What issues did you have?