It's "I have nothing to hide" until suddenly you do. But by then it's too late to do anything about it.
Last but not least, any new political party can be crushed by information asymmetry - if every minor indiscretion of their members is outed, while the ruling parties can keep their own sins hidden, thanks to a friendly intelligence apparatus, no new party will ever upset the status quo. It also means the old parties will be compelled to remain friendly with said intelligence apparatus (wonder why section 702 of FISA got extended again [1]?)
In other words, even if you personally somehow go your entire life without having to hide a single thing, unless others can hide things, you will one day wake-up under tyranny.
They're doing nothing wrong. They have nothing to hide. Everyone knows what they're up to.
And yet, they have this strange, inexplicable desire for privacy in spite of those three things!
Most people would take umbrage with this portion of your argument. They clearly do have something to hide; whether it's from shame, embarrassment or politeness.
Yet, walk into a gym changing room and you'll see balls swinging everywhere. They've done nothing wrong, nothing to hide, everyone knows what they are doing - but yet, they don't care about privacy?!
Social expectations set privacy expectations. People conform to those expectations outside of their own desires or wants for privacy / non-privacy.
As someone who's been to YMCA locker rooms in the 1990s, 2000s, 2010s, and in the 2020s, this is increasingly only true of the elderly. I don't think I've seen anyone under 30 walking around outside of the showering area without a towel for years now.
Another important distinction is that gymgoers in the changing rooms are free to choose whether to exercise their right to privacy, or to waive it, and there is not a corporation with a 9/10/11 digit valuation with entire teams of engineers dedicated to annihilating their privacy in pursuit of monetization.
What carmakers are doing to the privacy of end users is not terribly dissimilar from gyms prohibiting the use of towels / bathing suits in changing rooms, punishable with loss of contractual rights you had as a customer of the gym for the first violation, like getting financial recourse if the gym fails to abide by their contractual duties.
And yet almost nobody seems to think this is enough of a problem to stop going to that gym, which of course will only encourage the gym to roll out even more bizarre, draconian infringements on the privacy and freedom of their clientele.
For example, you drive the same way anybody else does on the road, you "have nothing to hide" in that sense, but you still wouldn't want your insurance getting up to the minute data on where you're driving and how because that places the control of your finances in their hands. You cook your breakfast the same way everyone else does, you have "nothing to hide" in that case, but you still wouldn't want your neighbours to be able to see a livestream every morning of you cooking without you knowing.
Would you reveal everything about your financial, work and personal lives to someone you were in a business negotiation with? Just because they wouldn't do anything "illegal" with it?
Information about each of us is leverage. Even when used legally, it gives away our power over our lives to others, to use against us.
"Cool, can I install a camera in your toilet? Or do you have something to hide?"