This is typical legal language 'parsing' that you find in almost all TOS agreements. Google doesn't sell the raw user data. But it data-mines it for 'information' (derived data) and sells this to 3rd parties.
So no data about Sven the individual is sold, but information about Svens 3rd grade class, and what level they are reading at, and how that compares to all other students using the platform is sold or used to promote the platform. I'm not sure why this is news.
Of course the lawyers that wrote the TOS should do a better job defining terms, but why spend a lot of time writing a TOS that no one ever seems to read?