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Just take off
This is firm specific, but utilization is usually evaluated on a review year or trailing 12 month basis. Assuming your review year does not end Dec 31, you will have to deal with the consequences later.
What would you do if you didn't take the week off? If you would have been unbillable anyway, it doesn't matter. Also, with a shorter week anyway, the utilization hit will be smaller than usual.
Utilization is based on the firm’s fiscal year, so runs from July 1, 22 through June 30, 23. Also, the firm shuts down between week of Christmas and new year - but most people will be gone week leading up to Christmas too