Preheat oven to 350°F and line a baking sheet with parchment paper.
Beat the vegan butter and granulated sugar together until fluffy and lighter in color.
Mix in the applesauce, vanilla extract, and almond extract until smooth.
Add the flour and baking powder and mix just until a soft dough forms. Don’t overmix.
Fold in the rainbow sprinkles.
Place granulated sugar in one bowl and powdered sugar in another.
Scoop dough into balls (about 2 tablespoons each).
Roll each ball in granulated sugar, then generously in powdered sugar.
Place on baking sheet with room to spread.
Bake for 10–12 minutes until edges are set and tops are crackled but centers are still soft.
Cool on the pan for 5 minutes, then transfer to a rack.