Users flagged it. We can only guess why users flag things, but in this case it's not hard to guess - some readers are past the fatigue stage with this story, which has had dozens of threads at this point.
Regarding that background, I agree that the scale does require more consideration.
For a similar example, Apple's Airtags have a number of protections against using them for nefarious purposes. Tile, Samsung SmartTag, and similar devices don't, but Tile users are about 2 orders of magnitude less common than Apple users. You could get pinpoint tracking of a person just about anywhere by dropping an Airtag in their bag, but you'd be lucky to pick up one or two pings if you dropped a Tile.
I think the NeuralHash client scanning approach is overly invasive, but at the same time I think it's a good thing that Apple has someone who's thinking about bad things that can happen while people are using their products.
Please spend a few bucks on supporting them.
A bit of a background on why apple did this (this was flagged, but I don't know why): https://news.ycombinator.com/item?id=28259622