Yeah, it's mostly just a weird feature in terms of ick-factor vs. utility.

I will say that "IT knows where I am" and "my manager / manager's manager / whatever sees where I am on Teams" would represent two very different personal annoyance levels at most companies I've worked at; at most places I've worked getting someone's location through IT required them to be doing something questionable or illegal (ie - working from an unapproved country) or breaking some obnoxious return-to-office policy, not just "hey is Bob out to lunch again or is he over in Building 6 so I can drive-by him with some questions real quick"