My feeling is that the issue has been shifted from the legitimate worry that "ads might appear alongside content that offends the viewer" to the made up one "ads might appear alongside content that offends us but that absolutely no one will see except those who are fine with it".
Another problem is that Apple is effectively paying people to say extremist things via Twitter ad revenue shares.
And, apparently in order to enhance this funding, nazi followers just need to follow a few big brands alongside their extremist content.
A third problem is that makes Apple look bad and damages their brand.
The platform promises "brand safety" but isn't delivering it. That's why advertisers have withdrawn their ads.
The owner of the platform very publicly cozying up to antisemitic comments isn't a good look either. Brands don't want to be associated with that. Brands don't like brand damage.
Tesla investors don't like the brand damage:
https://electrek.co/2023/11/20/tesla-investors-turn-tsla-boa...
Musk has chosen these outcomes. He has no one but himself to blame.