It's a privacy issue. You can use it to fingerprint a user, local IP will give you quite many bits of entropy. <https://coveryourtracks.eff.org/>
Honestly I'm not even sure if I'm surprised, but it's 2022 and we've been having this problem basically since the day WebRTC was introduced. At this point, if you care about privacy, you should probably put it in the same bag as third-party cookies and just block it entirely.