Jules
Where/how exactly are apps listing which apps are installed and how does the Play Store see that information?
I guess you should ask about this on StackOverflow. Most people here are not developers.
Also, does this mean that any random app I have downloaded on my phone also knows about all of the other apps I have downloaded (within the same profile in GrapheneOS)?
Yes. Also "downloaded" is incorrect, It should be "installed", There's an difference between "installed" and "downloaded".
Jules I always figured since the Play Store and everything is sandboxed
If literally everything (including OS version, app list, Reading sync settings, etc.) was guarded by an (appop/runtime/development
) permission, Apps simply wouldn't work and Users would suffer from permission fatigue. Sandboxing shouldn't be used like a hype word.