Not necessarily, if you kept your filters and extension up-to-date, you won't see that pop-up either. uBlock handles it just fine. During early days of YT trying to force me to disable it, all I had to do is to open the settings, update filters and it was just fine. Thankfully it's been peaceful now for long time.

Ublock does all this. However in the first few weeks you had to manually update it. In Firefox it works flawlessly now.

I got that modal for some time, switched to yt-dlp for that time, and now I get zero ads or modals again with FF/uBlock. Not sure what they are doing, maybe I'm just lucky.

I noticed it only when logged in. When logged out my UBlock works perfectly. (Note, I havn't logged in for a while, so maybe the situation has improved in the meantime) (Firefox)

That modal popup can be blocked as well. Ad blockers have element pickers for a reason. No need to wait for some official lists updates.