I know AdGuard[0] claims to have the ability of blocking YouTube ads in Safari, but I also believe it's behind an IAP. Alternatively, an Invidious instance[1] will play videos without ads. It doesn't work for music videos (thanks DRM!), and I believe you have to set the video quality to DASH in Invidious's settings for Safari to be able to play it. Not as convenient as YouTube, sure, but if you hate ads enough I think it's worth it.
[0] https://apps.apple.com/us/app/adguard-adblock-privacy/id1047...