It's certainly not the case with GrapheneOS. I have hardly faced any issues with the apps that I use. And if it's complaining about not having play services, you can install sandboxed play services on a new profile
Most apps work fine, but certain cases like NFC payments generally don't because those apps require that you are using an OS that is signed by someone on their allow-list.
On GrapheneOS, I have one banking app that works, and one that doesn't because of the linked issue.
Hilariously the message in the app says I can't be signed in because it's detected the phone is "jailbroken/rooted" and I "can still use our mobile site". The phone is not jailbroken or rooted, and using the mobile site on the same "untrustworthy" device is just as risky...
Even with the maximum of proprietary services I just about got reliable location sensing while outside. Still much worse than on iOS/stock Android. Banking did work however, kudos for that.
