A company the size of Google is simply not a single entity, so it isn’t surprising for one division to make a “private mode” that another division doesn’t respect.
But isn’t that an awfully big loophole for the corporate leadership? “Well, we’re doing so many things that our left hand can’t possibly know what the right hand is doing.” When really, the teams themselves know exactly what the score is, even if they didn’t hear it from the CEO. It’s plausible deniability by being too big to understand.
And it isn’t unreasonable for a consumer to believe that when “Google” offers them a private mode that Google products might become more private in some way.