How does this affect apps like Ledger live for hardware wallet cold storage? And does that mean we need to move balances out of cake wallet to Cold Storage to avoid this?

You shouldn't need to "move out of a wallet" if you've got the seed.

It means you need to install f-droid and add the cake wallet repository.

I keep seeing "buy a pixel and use grapheneOS" or download the zapstore. Leaning toward pixel/graphene as my Lgv60 is nearing end of life anyway...

I've not played with the zap store, but I've heard it's a good option as well. I use fdroid myself.