That doesn't even make sense. Google is the ad company. If they "sold your data" as claimed, they'd be giving away their biggest advantage to their competitors.

Isn't that just selling user data with extra steps?

It's using data to their advantage, but no it's not being sold.

Using data to target ads is still data exfiltration.

Because the destination knows the targeting and the IPs.

No, in the same way that selling wheat isn't selling land with extra steps.