aren't those ads targeted to the viewer (you) rather than the content of the video? if you watch it in incognito do you see those same types of ads? I'm not disagreeing with your sentiment, just curious. Also, the uploader of the video certainly has made a conscious choice to monetize a video targeted at children. YouTube certainly didn't do anything to help the situation, but some of the blame should probably go toward the uploader of the video.

As an aside: my kids occasionally watch videos in the YouTube Kids app (version of youtube curated for kids). That app certainly never shows wildly inappropriate ads (though it does have ads).