That’s not the important thing at all. The important thing is the Otter.ai is violating the privacy of its users, potentially even breaking laws in some jurisdictions.
If anything, it raises some more red flags that they’re ignoring consent for free users, since that could be interpreted as an attempt to monetize them by collecting data (again, without consent)
If you don’t want non-paying users, then don’t offer a free tier. You don’t get a free pass to do whatever you want to a user just because they aren’t using your paid plan.