This is true. But these can be got around.

Google hardcodes 8.8.8.8 as the DNS. Theres no setting to change it. You can turn on DoH, but that uses a hostname, which your phone gets the IP for using, you guessed it, 8.8.8.8. This is written into AOSP and isn't lineageOS specific. You can, with a little bit of work, change that to whatever you want. It is a bit involved, requires flashing to /system without the system resizing the partition but if you want to do it you can. I do, for now, but I'll probably move to graphene at some point.

All the other google phone home stuff is relatively easy to fix. Almost everything it does involving talking to google can be turned off with MicroG and not doing device registration and using a unified push application like conversations.