For anyone not familiar, Vanced is hacked Google binaries. It's the YouTube app, but with features enabled for free and ads blocked. They've been around a long time and are active on XDA.
I use Vanced on my phone, but if you're not into hacked binaries, NewPipe is what you want: https://newpipe.schabi.org/
There's the risk that Google will ban your account as it has done previously to some users, losing access and data hosted in their ecosystem (Gmail, Docs...), that's the thing that scares me the most. But yeah, Vanced (and the new YT Music) is amazing.
I guess the solution here is to not use your main Google account with youtube vanced?
I looked this up. This seems to be fear mongering. There are no confirmed cases of stuff like this happening. Too lazy to dig up the links, but go search for yourself. (Reports in YTVanced reddit and NewPipe github)