Is Android showing app ads in share menu now? Android is showing an Adobe app in the sharing menu and "Open with" dialog as if it's installed but will install it when I click on it.


   


Is this a new perk of advertising with Google Play? Is Adobe paying money to place an ad right in Android?
Blame Microsoft not Google

This behavior was reported in July this year. Microsoft was the culprit. See this XDA blog Microsoft is abusing Android’s share sheet by inserting ads for its apps with reddit
and Android Police
links.

This clearly is a violation of monetisation and ads policy as stated in the blog. See Google Play Content Policies

Your example shows Adobe products. I don't know if Adobe also started doing this or if it is a result of Microsoft - Adobe collaboration

For reporting use Report Inappropriate Apps but I am not sure how far it would help.