They 100% need the phone number for some of the base features like imessage.
The location however without the "find my phone" it shouldn't have a reason, I guess it's to allow them to put on the map any apple tags you have in range. I think these tags are opt out but I'm still stuck on how Apple casually sell the biggest semi-passive stalking tool ever made.
You need to read for five minutes about AirTags and how they work, and how Apple addressed any stalking issues already, before casually tossing around accusations like this with vagaries like "I think these tags are opt out" attached to them.
