Not so sure that they do.
If they knew so much about me why is it that I dislike most that they show me?
Perhaps - and that is now the most worrisome thought - that crap is the "best" they can show and everything else is much worse.
Now that does not bode well for FB's future. Or Meta's, whatever, even their brand feels a lot dumber now.
If you engage with it, they'll keep showing it to you. Their goal is not to make you happy, it's to keep you engaged so there is an audience for their ads.
In fact, this is why the outrage engine everywhere on social media. People who are upset are going to need an outlet to blow off that steam.
Disliking what they show you doesn’t mean they know less about you than a bank. It just means they’re not yet perfect in utilizing said information.