Facebook is totally fine with literal Nazi propaganda
For reasons I am forced to interact with Facebook on a daily basis, and the algorithm is pushing literal white supremacist and Nazi stuff onto my feed. It is not just lefty me calling stuff Nazi, here are two examples:

I regularly report stuff like this out of curiosity and the result is always the same: "We have reviewed the content and determined that it does not violate our Community Guidelines."
It has been clear for a while that Facebook is no longer moderated by humans, but come on, even the most primitive AI could detect that this is Nazi propaganda.
So there are two possibilities: a) The report button is placebo, it does nothing, just waits a couple of days and sends you the rejection message. b) The Community Guidelines allow this content, which is pretty surely illegal in most EU countries. (Don't know about the US).
Or both ¯_(ツ)_/¯