>It would be way more complex for AWS to look at data in VM's then for cloudflare to look at unencrypted HTTP traffic.

Most enterprises aren't using AWS as a VPS provider. They're going to be using other products like API gateway, ELB, or WAF, all of which expose traffic for easy analysis. Even if for whatever reason they are, the pareto principle applies. They don't need to care about the long tail of e-commerece vendors out there, only the whales. For that, they can just get an intern (or nowadays, LLM) to dump out the disk and manually dissect whatever's on there.