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They do encrypt it and they likely dont send the messages unencrypted.
Likely what’s happening is they’re extracting keywords to determine what you’re talking about (namely what products you might buy) on the device itself, and then uploading those categories (again, encrypted) up to their servers for storing and selling.
This doesn’t invalidate their claim of e2ee and still lets them profit off of your data. If you want to avoid this, only install apps with open source clients.
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E2EE means a 3rd party cant extract anything in the messages at all, by definition.
If they are doing the above, it’s not E2EE, and they are liable for massive legal damages.
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