Update:
So this issue still persists and using this phone with any dac dongle isnt a very good experience.
There is a partial solution though as mentioned by hamlinstephen, Use a USB C to 3.5mm dongle that does NOT have a built in DAC chip, this will work without introducing the static. They’re a bit rarer to find these days, but I found one on amazon from UGREEN that works just fine for £6.