I assume google cares about people who block ads because a month or so ago, google figured out how to show ads even though I am using a content blocker on iOS and macOS.
I don't think so. Disabling ads on youtube requires injecting JavaScript. It's not forbidden in manifest v3 (and it would be absurd to forbid it, as 99% extensions exist because of this).
For reference: I don't see ads on youtube using hand-crafted JS which was inspired by uBlock origin, so I think that uBlock origin should work as well.