If her picture had been handed out to all the security officers, would that violate her privacy? The argument "it's super easy to add new faces" would also follow if they just handed out bits of paper to the staff.

If the software is being used in criminal cases then, that's bad. If it's being used the same way a picture in the local 7/11 is used to say "don't sell to this person." then it's not so bad.

If it's being used to track someone as they walk around town, then I think it falls into privacy.

In this story. The lawyer was warned. It's reasonable to assume if you're suing me, I don't want you in my house.