From the new terms:
When you upload or input information through Firefox, you hereby grant us a nonexclusive, royalty-free, worldwide license to use that information to help you navigate, experience, and interact with online content as you indicate with your use of Firefox.
Fair enough, I get the caution honestly. Nobody wants Firefox to enshittify like everything else.
Sadly, I think it’s the road Firefox is going to take. The things in the ToS are vague, when they could easily be clarified, and that is an act of bad faith towards its users. That might give an opportunity for Mozilla to use some of the things against the userbase.