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Need a way to put 'New Task' button on the compact layout of account . I added it to page layout but the action is now appearing in activity composer.

We cannot use this because we have many record types, also there's no cancel button to close/collapse the component once the button is clicked.(I have seen an idea to bring the cancel/Close button to activity composer actions)

I saw this answer advising to add one more quick action, but I would like to know if there's no other way before I go ahead with this approach(Or Code).

What I would love to see is a 'New Task' button which pops up a nice little modal asking the user to select the record type user wants, you know, the standard salesforce way.

Thank you.

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I think the way to go for your scenario, and since it sounds like you do not want to have the button in activity composer would be to create a Flow Action (or a Lightning Component action if you prefer the with code approach).

Flow Action Docs

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