The issue is that they have not been good faith actors for many years now.
As explained by other comments above there is a hidden setting you need to change to get Google to actually run your ads in the areas you selected.
I don't think that's even close to a given, but consider how much time and money it would take to fight that lawsuit — they would be loathe to settle since it'd validate the idea for other customers, and you'd have to put in that effort hoping that they wouldn't succeed in being able to say it was a misunderstanding on your part or some nebulous “bug” which has reportedly been fixed. Most people don't lose anywhere near enough money this way for it to be worth fighting, especially since a lot of businesses would be worried about potentially being demoted on Google Maps, search, etc.
I don't know what you're trying to say, but that sentence is complete nonsense.
You can't make an illegal action legal by putting it in a contract.
If they are purposely making it difficult to understand and choose options then that can be a form of fraud.
