Yes, there’s a few misses, but it’s way better than the absolute scum-sucking garbage I see elsewhere on the internet from other ad networks. “Doctor shares one weird trick for emptying your bowels every morning”, “Alan Greenspan tells you what to buy instead of Litecoin”, and similar.
However, I don’t really use Instagram to connect with people I know. I follow a bunch of accounts related to my hobbies and interests. That probably primes the ad-targeting pump a lot better than if I was just following my friends and family on there.