And Apple provides iCloud+ members with a VPN which does not tie browsing history to users by separating ingress and egress traffic and using encrypted forwarding (similar to onion routing): https://www.apple.com/privacy/docs/iCloud_Private_Relay_Over...
iCloud backup is not end to end encrypted. iCloud sync of Safari History, Tab Groups, and iCloud Tabs is. The data collection the app page mentioned sounds like a 3rd thing. Or even E2EE is considered data collection for App Store purposes.
They are for iCloud backup, which is not the same as the data collected by the App AFAIK.