Google seems to be testing adding a local pack for ads along with a normal organic local pack, I believe. Here is a screenshot showing a local pack labeled as “Ads” that show a list of stores that have shoes near you.
You can click “more places” that will load more local ads. Below that is the local pack map, showing you organic nearby stores that have that product nearby.
Here is a screenshot I took from a Twitter video from Saad AK:
Here are more examples of this in action from Saad AK:
Sending to: @rustybrick SIR.
CC: @JoyanneHawkins MAM. pic.twitter.com/aCDPc0vC21
— Saad AK (@SaadAlikhan1994) May 19, 2022
I think this is new but I can be wrong?
Forum discussion at Twitter.
Update: Supposedly this is not a new thing, according to Google.