I use FreeTube on my desktop and Newpipe on my GrapheneOS Pixel 7, I don't see any ads or graphic overlays. The family uses AppleTV and the YouTube app is a horrible experience with the amount of ads, even for a 3 minute video. Future project is to look into Pihole or something to block ads at the router level.
Let's be honest, GM can't make money off owners using this software. They can make their own and have owners pay a subscription like some Tesla owners do now.