The pretext of this feature is supposedly that people who share computers are accidentally signed into someone else's account and this solves that, but why should this be done at the browser level?
I have a hard time believing that anyone who uses the family computer doesn't have their own account in the OS, where their Chrome profiles will be kept separate. I also have a hard time believing that this isn't just about making sure every session is authenticated to make cross-device tracking easier/possible. It's why every Google app on iOS seems to want you to log in. I think my suspicion is probably correct since they're making it opt-out rather than opt-in (knowing most won't).