Vanced used to be the way to go, but the project isn’t being maintained anymore.
Instead, I’d recommend ReVanced. It can be pretty simple to setup. All you need is Vanced MicroG, ReVanced Manager, and a download of the recommended version of the YouTube app from APKMirror. Currently, the recommended version is v18.23.35. (ReVanced Manager will tell you what the recommended version is every time you go to patch YouTube.)
Install Vanced MicroG first. Then install and open ReVanced Manager. Open the “Patch” tab, “Select an application”, then select “Storage” and navigate to where the YouTube app you downloaded is located. Then “Select patches”, making sure to include the MicroG patch. Then select “Patch”, then “Install”. You’re done!
Bonus tip: After the patch process is complete, before you tap “Install”, tap the three-dot menu in the upper-right and select “Export” to export the patched APK in case you run into trouble with the installation itself. That way, you don’t have to rerun the whole patching process, and you have a backup.
Edit: It seems !revanced has a guide you can follow, too, in their Master Post.