I'm not arguing for compartmentalisation, nor against the importance of all the teams you are talking about working together. There would absolutely need to be back and forth between legal and product as part of the encoding I am talking about, for example.

But it seems to me that if this was happening at even a basic level, then whoever is in charge of the product at Instagram must have known they were adding some pretty onerous terms. And if they didn't, it's a pretty massive failure to take the ToS seriously.

Neither option inspires confidence in a service that people provide with important data.