I feel like if Facebook parsed the names then it might be reasonable to hold them liable; them using it unintentionally would be treating them as opaque blobs. But that wouldn't be useful for advertising.
Since I couldn't find it in the article, I believe the relevant docket is Frasco v. Flo Health, Inc., 3:21-cv-00757, (N.D. Cal.) — don't have PACER access but it seems like https://www.courtlistener.com/docket/55370837/frasco-v-flo-h... has some info (see for example 744, final instructions for jury).
The final jury instructions doesn't say anything about whether facebook parsed it or not. If anything it makes the case worse than I thought. On page 17 the instructions says that the plaintiffs needed to prove, among other things, "That Meta intentionally eavesdropped on or recorded these plaintiffs’ conversations by using an electronic device". To anyone who knows how SDKs work, that clearly didn't happen.