Telemetry for Audacity is bad because it precludes children from using the software without any real reason.

Spyware by any name is bad, and this law acknowledges it, so far as to protect children.

Generally, no, that's not what that law in the US is acknowledging. It doesn't make any special consideration for any definition of "spyware" or any other similar concept, it talks about all kinds of data collection, including ones that would be otherwise voluntary and beneficial for an adult. There might be some other US law that talks about that, but COPPA doesn't.

It’s audio editing software. Kids should be allowed to use audio editing software freely. If the law requires no-one collect data on kids, stop collecting data from kids rather than tell kids they can’t use the software. That way, adults and kids have the ability to use the software.

Leaving the data collection on all the time, makes data-collection part of the terms of use of the software. Which makes data-collection part of the business model. Which makes the software spyware. It is always watching you.

If I followed you around all day, you’d label me a stalker, If I didn’t approach you, didn’t proactively threaten you, didn’t tell anyone else what I knew about you, you could still legally bring sone level of force against me. How is constant telemetry any different?

If you think that collecting anything from your users that would put you in violation of COPPA should a child decide to use a local application against local data on a local computer is appropriate in any way, you probably ought to think again. There is no justifiable need, period.