I am just running into this issue myself after updating to Pie. So irritating!
I have 10+ years of Google contacts carefully grouped into groups (family, work, oldwork, ...) and prior to the update, Contacts had an option to display contacts from Google, Phone, or CustomizedList. I spent a lot of time getting my Customized List just right and poof its gone in one fell swoop. When *ALL* google contacts are showing, the list is crazy long and mostly consisting of historical contacts that I don't want to delete, but I don't want to display. (don't want to see them and don't want to accidentally call them)
I wish at least Samsung(verizon?) would honor my do-not-auto-update-apps setting. I am so annoyed. Plus, the updated Contact app has all sorts of other unnecessary cosmetic changes that get in my way when I want to find a contact fast. Does every programmer who gets assigned that app think they have to re-design it to their liking? I'm additionally mad that Samsung/Verizon forced me to update to Pie when I don't need/want anything from it. Too early for wine? I gotta calm down...
I hope phone competition eventually brings us to a place we we have more control over phones we buy. (w/o having to be an engineer to get in the nuts and bolts either). Are we there? Is there an option for my next phone?
going to go look for other contact apps, but I suspect this feature is too niche and I won't find it.
samsung S8