So recently my moto G60 reached the end of life with respect to security updates. That was the reason I was using to prevent myself from switching to a custom rom(actual reason is laziness). This phone has rom support for pixel experience and lineage OS. So my questions are if pixel experience has any privacy advantages when compared to the stock rom the phone ships with¿? Also if I flash GApps along with lineage OS will all the privacy advantages I get with lineage disappear¿? I might need Google play services for some banking applications.
micro g, just like google play, is a privileged app and will have special access to your phone. This is just swapping one middle man with privileged access for another.
It depends on your threat model. If you simply want fewer targeted ads, there is a benefit. If you are a journalist under a dictatorship, there is little to no benefit.
Calyx with Micro G does have benifits, but isn't quite as good as sandboxing, and also doesn't have some of the other degoogling and security Graphene does.
Motorola phones are very easy to mod(root,custom rom) and even if you brick the phone in most cases you can just use the lenovo recovery tool. I personally use crdroid but lineage is fine too. I recommend you use microg with magisk to hide that the device is root/has custom rom. You can also just use shelter for the banking apps.
Pixel Experience has zero advantage for your privacy. LineageOS really doesn't do much to protect your privacy (or security). That's hardly surprising since privacy&security was never the goal of LineageOS to begin with. The only things Lineage will do for your privacy is 1. Remove Google Play Services
2. Remove your OEM's built in tracking. Installing Google Play Services will negate 1.
If you are serious about your privacy and is willing to make sacrifices, your best option would be GrapheneOS, followed by DivestOS. The latter supports many of the devices supported by LineageOS, so check if your device has support.
My device doesn't have support for graphene or Divest unfortunately. Which is why I made this post. I am guessing that lack of Google play and Google location services alone would be a massive improvement for my privacy.
Just remember there is a balance between security and privacy that these types of communities forget and typically greatly increase the attack surface of their devices for minimal privacy gains.
This is why, in general, giving special access to your phone with privileged apps (Google Play, Micro G) or severely reducing the security of the phone by rooting it is almost always something you should avoid.
The OS itself is private because it's DeGoogled. I also installed GApps because I wanted the convinence of the App store and core feature I've been used to for so long.
I also knew the moment I did the google-fication privacy was out the window.
I was fine with LineageOS and would happily go back when my Pixel7a becomes EOL.