Hey there, I don't think you are "unreasonably confused" about Ohm's Law. I do think the product description is not written with you and me in mind.
If you look at the data sheet for the part, it is "Rated" at 125VAC 0.3A. I take that to mean that they are "rating" the part for 125VAC (essentially for US mains voltage), and that the user should expect to safely pass 0.3A on a regular basis. What
I think they mean, and what the data sheet author
actually intends to convey may be two entirely different things, however.

There is no power dissipation rating. When they say: 125VAC 0.3A, they do not mean that it will dissipate 37.5 watts.
But they do say it will take 500VAC for 1 minute. I don't understand their statement of insulation resistance, but it is the same as the Alpha rotary switches on Mouser. Honestly, I wondered if this might be a knockoff from the mainland. It can be hard to tell sometimes. I've had good luck with Alpha pots over the years.
https://www.parts-express.com/pedocs/tech-diagrams/023-660-rotary-switch-1-pole-12-position-non-shorting-technical-drawing.pdfSimilar spec'd part on Mouser:
https://www.mouser.com/datasheet/2/13/R2511F-1522283.pdfLOL, don't we wish Alpine control switches were less expensive?