'The scary thing is'
.....“Advertisers who’ve uploaded a contact list with your information.'.....
That's a very small part of Shadow Profile scraping that has only recently been disclosed (2017 in our area). It has barely any of the true high-value user info (User 'Likes' / Real Address / Phone, Job / School info etc). However, the truly scary part is, Facebook is assembling this info anyway. How? As you hinted at, they're taking Telco CRM data and pairing it with email / phone / address as a match to every possible Facebook user account...
In my household that kind of personal info never ever existed on there - ever! Facebook didn't have it! So what's going on here? My guess: Facebook are extrapolating users who are friends / family in the general area and backing out of it, the likely 'secondary' or real email / phone / physical address used by that same user using highly-accurate Telco user databases.
Scary! We since closed our Facebook accounts. Instagram was never used. Can't escape WhatsApp. Its needed for a new job (first time registered). But its on a throw away SIM on a dedicated phone. All personal contacts are on secondary phone that only uses Signal. But its ridiculous you have to go to these lengths!