The headlines around this have definitely blown things up. Running a VPN service so you can snoop on how customers use other services is plenty scummy, no need for the catastrophising.
If you want to focus on just the VPN bit though; running a VPN would not break Amazon's secure communication. For Facebook/Meta to accomplish what they did they had to place fake endpoints in-between Amazon and its customers where they could pretend to be the party Amazon thought it was communicating with.
You have at least two parties in any conversation, I don't see where Youtube or Amazon consented, nevertheless, the recording was being done by Meta/Facebook, which was a third-party to the communication.
There are both Federal and State laws against the sort of wire-tapping that Facebook/Meta performed.