It seems doubtful that you can hide the fact that you had a 1 year old kid from facebook, unless you're a very sporadic/careful user. Besides, it's not too hard to imagine one of your friends outed you to facebook (eg. posted photo of you with a baby, or mentioning the fact that you have a baby on a post/comment somewhere). From there it doesn't seem too implausible that "had 1 year old kid" was a targeting factor for "window safty latch for children". As for the "looking for an apartment" part, I don't really think that's necessary for sending you ads for safety latches. Even if you live in a house you'd need latches to secure room windows that are on the second floor.
>2. So facebook leaked information that a conversation happened between me and a friend and they thought, oh you know what, Phillip had a conversation with X, and X just search for 'cat toys' so Phillip must want cat toys right now!
e2e provides zero assurances about metadata/social graph. that's been the case since PGP days.