A) Pay the 10 euros a month, no ads, no tracking whatsoever
B) Don't pay the 10 euros a month, get ads, but no tracking if you don't EXPLICITLY consent to it. Ads != tracking, they can exist without invasive tracking.
C) Don't pay the 10 euros, get ads and assuming you don't care about tracking you consent to it. You get more personalized ads in exchange for this, which for some people I guess is a good deal
Instead, what's happening is:
A) Pay the 10 euros a month, get no ads, but still get tracked (let's be real here, it's Meta we're talking about)
B) Don't pay, you have no option but to consent to being tracked and being shown ads. This is what's illegal. If they don't want users to have a chance to voice their consent, then they should close down shop in the EU and only offer their services to paying customers, but we all know Meta doesn't want to lose out on the 2nd largest market in the world.