There’s a difference between embedding a video in a page and putting ads in that page vs having ads in a video.
YouTube’s ads that we’re discussing are the prerolls, or the little tiny windows the pop up in the corner of the video, etc.
If someone puts ads on the page they’re embedding your video in that’s a whole other can of worms, they’re making the money from those separate ads - and depending on the situation, that probably is an ethical, and possibly a legal, violation.