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Food sales violate CL's terms of use.  I've seen some creative ads left alone.
In our area, there hasn't been a problem with eggs listed in the farm and garden section.  I've seen lots of ads for eggs.  Lots of them.
Same here, lots of egg ads.  
But in areas where all the consumable egg ads get flagged off, the flags are let stand because of the TOU regarding non-packaged food sales...even though eggs come in a perfect package as far I'm concerned. 
  
Sometimes rabbit ads in farm & garden are erroneously flagged off as pet sales even though the sale of agricultural livestock is fully within the TOU.  
There's often flagging tools used to mass flag certain items, "tools" used in violation of CL TOU, and sometimes individuals group together to flag ads they don't agree with.
OP, glad you made the choice you did. 
 Our instincts are rarely wrong.