100.00% this take. Google is redefining "malware" to fit their corporate narrative so ads-with-ads-with-tracking is labeled as fine wine. It simply cannot be malware because that truth would decimate their shareholders. Malware by any other definition remains software that disrupts the user's ability to operate the device:

https://en.wikipedia.org/wiki/Malware

https://www.ibm.com/think/topics/malware

https://www.cloudflare.com/learning/ddos/glossary/malware/

https://www.cisco.com/site/us/en/products/security/what-is-m...

https://www.britannica.com/technology/malware

https://www.fortinet.com/resources/cyberglossary/malware

https://www.kaspersky.com/resource-center/threats/what-is-ma...

https://www.mcafee.com/learn/malware/

https://www.trendmicro.com/en_us/what-is/malware.html

https://www.t-mobile.com/home-internet/the-signal/internet-h...

https://www.merriam-webster.com/dictionary/malware

Both things might be true. Sideloaded apps are probably way more likely to be malicious, but also most installed malware/crapware is quite likely coming from Google Play.