Bakers started baking breads and goods at home and selling them out on the streets.
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Can we us 'breads' instead of 'bread'?
No. The word "bread" is a non-count noun, just like milk and water.
https://academicguides.waldenu.edu/writingcenter/grammar/nouns
You could write either of these:
Bakers started baking loaves of bread and other baked goods at home …
Bakers started baking bread and other baked goods at home …