My guess is that GitHub where the code is hosted collects way more telemetry than this and nobody bats an eye at that.
It's not clear what sort of thing you're referring to, it's generally not possible to make a service where you have accounts and billing, that simultaneously doesn't store your information. The whole point of it is that you want it to store your information.
Yes, they probably also know that I usually connect from an IP address in Chicago. And, while storing that information isn't strictly necessary, I'm also more-or-less 100% confident in saying that anyone who might want to keep tabs on me already knows I live in Chicago, and that would have been true 30 years ago, too. (Well, 30 years ago it was another town, but still.)
I suppose a lot of this is maybe just a halo effect due to all the (quite legitimate) upset about surveillance capitalism? Which is fair. And perhaps we want to say that it's easier to try and shut down all telemetry than it is to distinguish legitimate telemetry from abusive telemetry. Lord knows, if we try to carve out any concept of legitimate telemetry, adtech companies will immediately go about probing it for loopholes.
Also, GitHub is Microsoft and LinkedIn.