The game works with most mods. I have 60 and there were a few bugs but everything's been patched and updated already. From what I can tell on the forums, everyone complaining was a valheim+ user.

I specifically tooled my modlist to not use valheim+ because I read the writing on the wall that it's a dead/dying project with way too many conflicts and bugs. You will have to do the same.

By the way, "not supported" means "we won't do extra work to keep it working/fix it" it doesn't mean they're against it. It just means it's currently out of their development scope because the game is still in early access and subject to drastic future changes. Official mod support is one of the last things most games get.