Lavander

I heard essential oils like lavender are not essential for people who have sensetive skin as it could potentially cause irritation, purging and dryness

is it essential oil from lavender did u mean ? it actually depends ^^ . there are some people even with sensitive skin can tolerate with its. but there re some of them which cannot tolerate at all especially who with VERY sensitive skin type

Just like with artificial fragrance - it is a matter of testing yourself to see whether or not you find it sensitising or not. Im lucky that I have no issues with either (its just practically everything else that causes me issues 😄) I'm not a fan of strong fragrances but that is personal preference and not necessity. In saying that the majority of my skincare is fragrance free. I think though having sensitive skin if these ingredients are not in your products it is one less thing that you have to worry about irritating your skin.

In terms of oils or fragrance?

Dr. Dray has a video where she said lavender oil can cause irritation to sensitive skin.