I’ve tried blocking the ads with a pi-hole, to no avail. I suspect the ads come from the same servers that the articles do. I can’t find obvious ad servers in the query logs. If anyone has a hint on blocking Apple News ads at DNS, I’d love to hear it.

1Blocker, with their in-app tracker blocking turned on, will block Apple News ads on iOS/iPadOS and will also block ads in Google News and free to play games. I guess you can’t block tracking without also blocking the ads. It installs a local VPN profile that blocks connections to hosts typically blocked with dns based ad blockers. They’ve increasingly hidden the feature in the app, for some reason.

How is it on battery life to run the VPN continuously?

I haven’t noticed it consume any additional battery. It doesn’t actually connect to a vpn server, or reencrypt traffic. It’s just a hack to deny select connections. I often do end up turning it off after a few days, though, because some times I need tracking redirects to work, and I’m too lazy to always whitelist.

I'm using AdGuard running in Home Assistant and I don't see any ads in Apple News.

Looking at what gets blocked when I open the News apps, try going for these domains:

news.iadsdk.apple.com

news-app-events.apple.com

news-sports-events.apple.com

news-events.apple.com