This should trend to the top of HN. Apple bills themselves as a privacy-centric company. I hope they clean this up asap.
Apple doesn’t really care about preserving your privacy from Apple (and by extension the FBI).
They maintain backdoors in iMessage specifically to preserve the ability of Apple/FBI to read your messages:
https://www.reuters.com/article/us-apple-fbi-icloud-exclusiv...
The fact that Apple OSes leak your true IP (and thus city-level location) to Apple around your VPN is not an issue to Apple; it may even be intentionally preserved this way to aid investigations.