Aleyda Solis posted a Twitter poll last week after Google published its suggestions around the link spam update and nofollow vs rel sponsored attributes. The poll showed that SEOs are very split around how they will or will not handle sponsored links.
1/3rd said they will follow the links (not add any nofollow or rel sponsored attribute to the link. The other 1/3rd said they will simply use rel nofollow. The final 1/3rd said they would likely switch to using rel sponsored on those sponsored links.
Keep in mind, while Google's guidelines say you have to use a nofollow or sponsored attribute, you don't have to use one over the other.
Here is the Twitter poll, I am mostly referencing the second poll in the story above:
… 2) If you’re not yet using rel=“sponsored”: Are you updating your sponsored links configuration after seeing the announcement of Google’s Link Spam Update?
— Aleyda Solis 👩🏻💻 (@aleyda) July 26, 2021
Forum discussion at Twitter.