This is complete science fiction / FUD. Amazon can't even stop showing you ads for vacuum cleaners after you buy a vacuum cleaner, you think they have the compute for something that sophisticated?
Not able to compute that won't stop them reselling or holding it.
At some point it will leak, and available for sell to PI or someone will more personal interest on you
No one has the storage capacity necessary to store that much audio content, let alone video.
Furthermore, the incremental benefit over traditional ad targeting via search or web history is probably pretty marginal, and not nearly worth the effort/cost. All of these scenarios (Jake Jacobs' wife, Jeff Jone, Jennifer Smith) are already going to show up in a traditional search history, why would an ad company go through all that effort to get data they already have? This is real life not a Mission Impossible movie.
If 1% of people buy a second vacuum that ad placement could be very rational.
Some people have big houses, others want to buy another brand, and some people love their cleaner so much they buy a similar one for their cousin's birthday.
It’d probably be mostly happening on-device. Why waste their own compute on it when they can just drain your battery and send themselves only the pertinent details.