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When testing with Google Tag Assistant I noticed two issues with this example:

1. I believe we need brackets ([, ]) when setting default consent to denied:

// Set default consent to 'denied'
gtag('consent', 'default', {
    [SERVICE_AD_STORAGE]: 'denied',
    [SERVICE_AD_USER_DATA]: 'denied',
    [SERVICE_AD_PERSONALIZATION]: 'denied',
    [SERVICE_ANALYTICS_STORAGE]: 'denied',
    [SERVICE_FUNCTIONALITY_STORAGE]: 'denied',
    [SERVICE_PERSONALIZATION_STORAGE]: 'denied',
});

2. I got the error "A tag read consent state before a default was set". Do you think the snippet above has to be executed before the following pre-existing code I had in the header?

gtag('js', new Date());	
gtag('config', '{{ site.google_analytics }}');

@orkun1675 thx, you are totally right, fixed it.
And point 2 makes sense, try to set defaults before any other dataLayer update. I do this and don't get any errors like you have (also updated the docs about it)