AdGuard as a service is alright, but it’s essentially just a pihole that you don’t have any control over. It does DNS level blocking, which means the ads get blocked before they even load on your network.
The issue is that since you’re routing all of your DNS traffic through AdGuard, you’re directly telling AdGuard which sites you are using. So there are concerns that you are just shifting the data collection from the ad companies to AdGuard instead, but AdGuard has the ability to be way more invasive in how the collect data.
Just set up dual piholes (one for your primary DNS, and one for your secondary DNS) instead. You get the exact same end result, without any of the data collection worry.