Using public Wifi with a VPN: What are the risks?

A friend of mine recently said that using public Wifi is risky even with a full-tunnel VPN, because the router would still be able to interact with my device, regardless of a VPN, and could potentially exploit any weaknesses of the OS.

How much truth is in this statement?

To my limited knowledge when I join a network I am assigned an IP and told which DNS to use and then I happily disappear into my VPN tunnel?

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