CB Facebook Connect is discontinued. Please use CB Connect. Please note Facebook has made API changes and CB Connect is broken unless you're using latest release, which is for CB 2.0.

You've a template CSS conflict. Looks like ul/li elements are being styled pretty aggressively. Right click in Chrome or Firefox then click Inspect Element on the menu item to review its CSS.

Unlinking also is not a menu item anymore. It's a part of the Facebook ID field it self (as well as the other social id fields). Navigate to profile edit and you can click a checkbox to unlink.

OK, but the first point is that it was fine, with the same template, with CB 1.9.1
The problem only arose with the change to 2.0.3

We're not using heavy !important tags anymore as it's bad practice. So aggressive styling will override CB. There's no avoiding this except to change the styling to be less aggressive. All of our CSS has pretty strong weight by prefixing with our cb_template class and if that's not enough then changes are the styling that's breaking CB is using # selectors, which are also bad practice as their weight begins at like a 1000.

Now I have to work out how to do the css to include the bullets, where needed, in general content and exclude them in comprofiler ul/li elements.

Just change its selector to a reasonable class. Example as follows.

BadREALLY BadGood
You could also use .MyClass > li. There's any number of ways to do this safely without forcing a styling on an element. Next you'd add your class anywhere you want it used. For example when adding a list to an article you'd add your class to it. This avoids forcing the styling on everything, which causes issues like you're seeing. We can't style around every 3rd party developers template.