It's not that big of a leap of imagination when you realise that the data is shown to the user on an Apple Map and that Apple has been collecting location data since iPhone was launched, in many different ways.
- Apple is collecting location data, but not YOUR location data
( https://www.techradar.com/news/phone-and-communications/mobi... ).
- Apple tweaks privacy policy to juice location tracking
( https://www.imore.com/apple-posts-qa-location-data )
(Note the dates on these articles).
Moreover, all this "feature" of collecting data on app usage through "screen time" or the feature of getting location data from other apps to "inform" the user is just a very reasonable excuse by them to collect more data and profile you, in the guise of "transparency".
Having trusted Google once with a similar "Do No Evil" propaganda of how trustworthy they are, and ultimately been betrayed by them, I can recognize that Apple is following the same pattern as Google - collecting more and more data followed with a PR campaigns about how they "care" about a privacy. But despite all this PR about "transparency" note that there is no way to opt-out of any such data collection and sharing!
(No, I am not an Apple basher - I have and use their products and actually advocated for it a lot with others. Still do under some circumstances. But I am losing faith in them ... ).