For what it's worth, the whitepaper for their VPN makes some pretty strong claims to user privacy, with the VPN client being open source. Normally Google's privacy policies are fairly vague, but this seems to be very clear about the claims and what is/isn't logged. Maybe all the Cohort/Privacy Sandbox things makes IP somewhat irrelevant anyway, and they're just banking on folks who will continue to provide data through other Google services? I really can't speak for the true privacy implications of using the VPN, but I found this interesting.
https://one.google.com/about/vpn/howitworks