Well, you read it, so you read the Directive as well, which is specific about what is and isn't okay. I guess you're fine with Google and whomever else just using your computer for whatever purpose they need. The law is written to keep such activity narrow and for the application's intended purpose, period. Now perhaps the EULA (that no one reads) is written to allow a lot of flex, and that's where they think they can keep it legal.
It reinstalls itself if you try to remove it normally. It's named so as to not be easy to find (especially since there wasn't any prompt letting you know it was being installed, or asking permission). It is more than a local AI, it's connecting outside and being used beyond a controlled action.
As an adult (since we had to go there and not just discuss it like adults), that all sounds not very trustworthy or legal to me. And while I don't use Chrome because of its other problems, a lot of people do, people that aren't going to be the wiser because of this "normal" update.