Well part that break any banking apps, i can't deny that
But there's fix for that things, i just followed some guy instructions from XDA Forum & all my banking/paying apps work flawlessly
Of course it's not easy work at first tbh, but always remember it's hard but you only do that hard working once

I remembered 10 years ago have same thinking like you, but after internet has became shitty i must do that. At first yes.... everything seems like hard things to do since it's first time for me do something to my smartphone way beyond it's recommend, but after that it's just like walking in the park

Depends...
Adguard has little secret that can strip any protocol request, basically it's has monitor that can detect any weird behavior apps that has access to internet

From my experience it's work flawlessly, but you need a little bit of work to enabled it & of course you need the right filters
In my device i used AdAway for host blocking (a.k.a non regex filtering) & Adguard for blocking ads that has weird behavior. Both of them works flawlessly & since then my device has no ads/tracking or whatsoever wherever i go

AdAway alone can't remove that thing unless you used HAGEZI filters & 1Host pro filter
For apps i just used Adguard bc it can strip any protocol & block ads even if that app has encrypted ads