Sites usually get hit when there is an update but most recover without doing anything. Just the way things are. Best to relax and get to understand what the issue may be instead of jumping into fixing things.
I think you can still benefit from an expired domain from a different niche linking to you. Relevance is a complicated issue. To take your example, if your niche is baby products and you get an expired domain in the foods niche, then you can always have a baby feeding department that makes it...
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