Bluetooth is a wireless protocol. It's "normal thing" is to connect two devices. It CAN identify and locate devices by abusing beacons, but saying "that's what Bluetooth does" is crazy. That's like a falcon x rocket destroying my house and someone tells me "that's just what a rocket does". No, someone flew it there.
Bluetooth is passively looking for devices to connect to all the time. The alternative would be to require users to actively initiate connections, which would be a horrible experience.
I've been using Bluetooth for at least a decade and I really believed this active connection was actually needed.
Yes, passively looking for devices is very different from noteing each device, tagging it with a location, and adding it to a central database.
WiFi has been used this way for 15 years to aid with approximate location queries. I don’t think concerns with the technology are unjustified, but referring to it as abuse is unnecessarily histrionic. This type of use for radios is not unprecedented, and eg the “central” database you refer to is only central in any meaningful sense if their implementation ends up being flawed. Otherwise is an encrypted repository of user data.
That has nothing to do with bluetooth.
It's scans for tags, but the location is still reported constantly by the phone.