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There’s a simpler explanation – you’re in the same geospatial region or you’re connected to the same networks as the people you’re having conversations with, and those people also looked up the things they have conversations about.
If you have GPS, Wi-Fi, or (possibly) Bluetooth, then that’s how they can pretty easily associate you to those people.
It’s a reasonable explanation, and what I typically assume to be true. Still, I’m curious about the actual mechanics, and if it potentially could be being done by Google without the larger tech industry being aware of it.
I believe technically-inclined people could monitor the traffic that exits the phone, or at least passes through the router.
Audio recordings would be larger than the kinds of stuff that’s just sent passively.
They can and do. Nobody has shown evidence of this happening.