The purpose of this paper is twofold: 1) Applications of Gallagher's larger sieve modulo prime squares do not work. In some relevant cases we can transform the residue class information modulo $p^2$ to more suitable residue information modulo $p$, so that we can successfully apply the sieve. 2) The applications to Hilbert cubes are of interest in their own right: We study the maximal dimension of Hilbert cubes in various multiplicatively defined sets. For the squareful numbers in $[1,N]$ we achieve an upper bound of the dimension of $d=O(\log N)$. The same upper bounds follow for multiplicative semigroups of integers defined by a positive proportion of the primes, and the set of integers representable by an irreducible positive definite binary quadratic form. Eventually, making use of the sun flower lemma we give an improvement on the maximal dimension $d$ of subset sums in the set of pure powers in $[1,N]$.