the 3rd generation TC overall has functioned as expected and I have not encountered any major power or hard disk failures since I bought the product some years ago.
Just to be clear, the average useful life of this version of the Time Capsule was about 4-5 years.
I have experienced a few minor backup failures in which the sparse bundle files have become corrupted or damaged in some way, and have had to be re-created. I'm unsure if that's related to updates to the Mac OS or due to another problem
You may have a different opinion, but corrupted sparsebundles are not "minor" failures, since you lose all of your backups for a given Mac when this occurs. Unfortunately, this is a fairly common issue with the Mac and Time Capsule, and it is difficult to point to the real culprit for the issues. Some operating systems have more problems that others in this regard, but the issue has been with us for many years. Older Time Capsules are simply going to be more prone to experience backup problems.
I also backup each desktop Mac nightly using SuperDuper to create a mirrored, bootable hard drive to an external drive as well as using iCloud, OneDrive & DropBox for personal files and Box enterprise account for my employer-related files.
Good plan to have an additional backup strategy in place.
Again, backing up data is not an issue for me since backups are being processed by the TC on all computers. The issue I'm having is only with the networking capability - not with the hard drive backup.
And I am sure that you understand that when.....not if.....the TC hard disk fails, you will very likely lose all of the backups. Personally, I would not trust any hard drive with 8 years of use on the product, but again this is your call. It will really help that you have an additional backup plan in place.
The 2019 iMac frequently drops the TC wireless network (which interestingly seems to only occur with the 5 Ghz network, the 2.4 Ghz network remains connected).
LaPastenague has already responded on that issue and we should know more when you work through his suggestions. 5 GHz has always been a maverick of sorts. Faster speeds are attainable with 5 GHz, but it is not as stable as 2.4 GHz in my experience, since 5 GHz signals are generally weaker signals compared to 2.4 GHz.
The new iMac is capable of 802.11ac wireless, but your version of the Time Capsule cannot do 802.11ac. That may or may not be part of the problem trying to get products that were designed in different decades working well with each other.
In general, 5 GHz works best when the router and computer are in the same room or very close proximity to each other. I have found that if the 5 GHz signal must pass through only one wall, the speed drops by about half. Your experience may be different though.
To avoid confusion, I am not going to comment on the wireless troubleshooting that you will be doing with LaPastenague unless I have some significant and different input.