It might tip off to people that they are being observed by the police. That would be my guess.
I'm not sure how frequently the codes are refreshed, but you could just hide a bluetooth receiver near the police station to get the daily codes for most officers, transmit that to your phone and have an app that tells you if a police officer is nearby.
https://twitter.com/hadleybeeman/status/1309013275745685511?...
Except for undercover or plain clothes police officers this doesn't seem like a big deal.
[1] A mostly theoretical flaw (as you need a large network of BLE scanners) on some devices: https://hackaday.com/2020/09/03/covid-tracing-framework-priv...