"midsize" car in white hill towns?

The only place I can think of, and easily avoidable, would be in Arcos de la Frontera. The one way road that leads up to Basílica de Santa María de la Asunción is straight. There is a small parking lot at the church that can be difficult to maneuver in if it’s busy. When leaving the church there are a couple 90 degree turns on the way down the hill that can be difficult to navigate with a larger car. A way to avoid that road is to park in the large lot at the bottom of the hill and take either a taxi or the tram up the hill.

For Spain I generally get a manual compact SUV. The last few visits it was a Seat Arona and once we were given an automatic.

I will also be renting a car in Seville and dropping it off in Valencia. I have rented from Auto Europe for years, which accesses cars from multiple major car rental companies. Europcar has an economy car available at the Seville Train Station on the dates I plan to rent in October.

Last September we had a compact stick shift car in those cities. In Arcos de la Frontera the only option was to park and taxi in, so no problem there. In Frigiliana, driving in was fine but parking was a challenge so car size might be a factor there but, with patience, you should be okay. Driving in Granada was a nightmare and you do not want a car in Sevilla, so pick up and drop off accordingly. No issues elsewhere. Have a great trip!

Grazalema has several designated parking areas. Two are on the edge of town and the largest is near the Tourist Information Centre.