It seems Moodle 4.x+ is not using any special feature of MySQL 5.7. I changed the minimum requirements to 5.6 and it works without any issues (Not sure if anything happens in the future though, but all plugins, etc work properly).
Some shared hosings similar to Bluehost are still offering Mysql 5.6.x. The way to get around this limitation is by changing the minimum requirements of Moodle 4.x in its environment settings.
In the "environment.xml" file inside admin directory of Moodle 4.x, change all four occurrences of version="5.7" to version="5.6" as follows:
<DATABASE level="required">
<VENDOR name="mariadb" version="10.4" />
<VENDOR name="mysql" version="5.6" />
<VENDOR name="postgres" version="12" />
<VENDOR name="mssql" version="14.0" />
<VENDOR name="oracle" version="19" />
</DATABASE>