When you connect to a VPN you advertise the fact that you are connected to a VPN to your local network, and hide your tunneled traffic. The tunneled traffic emerges elsewhere, with the extra encryption removed and proceeds as normal. Basically all a VPN provides is a mechanism to pretend that your butt is in a different seat. You hide your traffic from one network and expose it on another.
If you are on public wifi somewhere and are concerned about traffic that isn't otherwise encrypted (DNS comes to mind), or if your connection is in some way restricted (govt, shitty isp, etc), then a VPN can address these issues. But you have to keep in mind that your new network is similarly untrustworthy.
You might argue that by hiding behind your VPN provider, you are gaining anonymity. This might be true under the best circumstances, but this can _very_ easily break down. For example, the moment you load tracking_pixel.png then you are de-anonymized. That is saying nothing about the shady practices of the VPN providers themselves, or the governments that regulate them.
When people connect to a VPN, especially lay-people, there is this feeling that the VPN is providing security, and privacy. This is largely marketing BS designed to sell more subscriptions. When I connect to a VPN I might be able to obscure my activity from state actors, or avoid some coffee shops bogus DNS server. What I can't do with a VPN is avoid literally every other form of tracking. And of course if I connect to a VPN, then I should be ok with those same bad-actors knowing I am connecting to a VPN. And I should be OK with the VPN provider being able to monitor my unencrypted traffic. And I should be ok aggregating all of my encrypted traffic into one easy to watch place.
So what is a VPN providing the average consumer? If you want privacy install ad block software, https everywhere, enable DoH, don't log into social media sites, and clear your browser's cache frequently. If you want to avoid a state actor, then your best hope is probably something like Tor Browser.