Is a payment method required for first time use of apple id in app store?

Yes, you can set up the payment information to "None" and use Apple GiftCards to pay for Apple Services and content:

How to create a new Apple ID - Apple Support

What you can buy with your Apple Gift Card or Apple Account balance - Apple Support

From: Sign in with your Apple ID - Apple Support - at the very bottom: "When you sign in to the App Store and other media services for the first time, you might need to add a credit card or other payment information."

The article to which I provided a link implies you don't have an issue until you first try to use the stores for the first time which is what, "Is a payment method required for first time use of apple id in app store?" was asking.

I have never had to enter a payment method but I created my account 18 years ago and this may only apply to newer IDs when you actually try to use them for the first time in the stores. At least that's what Apple says.

I did this a couple of weeks ago.

You will not need a credit card, debit card or similar payment options, if you choose "None".

The Apple Gift Card will be the "other payment information", as you quoted correctly from the article mentioned in your post above.

And as long the Apple ID balance is being topped up by redeeming those Apple Gift Cards, you will not have to add any credit card etc.

I was able to set up an Apple ID , helping a friend of mine, without having to add a credit card or other payment method first. Selecting "None" has been no problem in the setup process.

I'm sorry, that Apple document must not know what its talking about. You've gotten the official ruling by an Apple team member that you definitely will not need to enter a payment method..