If you use SSO with the account you were going to use your e-mail address with, it makes little difference whether you used OAuth2 vs traditional e-mail based authentication. You're locked out.
If something happens, like OAuth2 stops working, most websites allow password reset to the e-mail address connected to the account, and then can log-in without OAuth2.
The concern here is probably related to some Log-in with Google scripts that run on the frontend, although if they were just using normal OAuth2, then I think they are wasting their time: whatever sensitive information Google gets via OAuth2 they also get via the unencrypted e-mails you're sending to them anyways...