I tried using Guest 1 but I keep getting issues where devices disconnect or cant connect to the internet. I remember having an issue with Guest 1 in the past which is why I use Guest 2 for my 5ghz guest network.
With FIOS there is a known issue with Guest 1 where DHCP requests from the Guest LAN go out the WAN port and take down your internet. Removing the guest VLANs (501, 502, and 503 if it exists) via startup script from the WAN port solves that, but not sure if that is something you want to toy with. I'm also not positive if this impacts the 8x series routers, but my guess is it probably does. Unfortunately VLAN configuration on those routers is a bit more complex, but there are threads here on how to do it.
If you want to use Guest 2 and have a separate subnet, then you're going to get even more into scripting to create a subnet, DHCP pool, vlans, etc. Far more involved especially on the 8x series routers.
If the requirement is to have a separate subnet without doing any scripting or messing in the CLI, there are a couple options, both require you to use the AC router(s) as standalone, not part of a mesh. The easiest is double NAT, the other option is to disable NAT on the AC router(s) and use them strictly as routers. With both you'll need to add a network services filter to block traffic from accessing your main LAN subnet (or some dummy static routes to blackhole the traffic). If you're willing to do some scripting with ebtables/iptables then it is more flexible allowing you to be able to access guests from LAN but not the other way around, but you'll need to get your rulesets just right and test it thoroughly.
I don't think you need to worry about double NAT especially if it only impacts IOT devices that don't require incoming access from the WAN. What little they do with the internet is not going to be hurt by multiple layers of NAT.
In cases like this I've seen people put their dedicated guest router(s) as the first hop off the ISP router, then their trusted router chained off that. That puts the guests outside of your LAN and they can't access your LAN unless you set up inbound port mappings and routing for them. But you may not want to try to run your AX through your AC before hitting the internet, depending what your internet speed is.
You do have a lot of devices but I don't know that you're at the point where you need to have separate subnets. In reality the limitation on these routers is more the AP portion, the number of wireless clients connected, not the number of flows or IPs etc. So having a mesh set up with GW2 or GW3 for your IOT devices may solve your problems since you'll be spreading out the load better (assuming they get balanced amongst 2 or 3 nodes), and a much simpler solution. Basically whatever solution you arrive at you want to try and keep it under 50 wireless devices per AP if possible, the less, the better. Not to say they can't handle more, but it is when you start seeing sporadic issues.
Actually NOT having a mesh, just configuring the AC routers as a couple standalone APs with their own guest SSIDs, gives you ultimate control, you can have 3 different guest networks for the 3 different routers, and tell each IOT device exactly which router to connect to (and even which frequency band), and it can never change.
I'm not positive with AImesh if you can have certain guest SSIDs on certain nodes only, but if so, that would work too, you could have a mesh but still the ability to lock devices to a certain AP.