Yes, this is the reason Meta keeps fighting Apple and Google when the app stores add marginal transparency.
I wonder how many people will even consider the possibility that they need to check those permissions carefully lest the social media app collect health data?
Part of the issue is privacy policies tend to creep and become increasingly more opaque.
I think a better rule of thumb is that you cannot trust Facebook or companies like them to ever respect your privacy or that of people they can link to you tangentially on any level. If you're willing to sacrifice your privacy and that of your family/friends, and you understand that Zuckerberg himself thinks people who use his service are "dumb fucks", then you're going in with your eyes open.