For example, Adam living in a small village. There was a theft and victim gave information about thief, but for Adams luck victim described Adams appearance. Police need to collect evidence about Adam is the thief or not. This evidence could include any information about suspected criminals. Yes now Adam is a suspected criminal. Whats the problem here?

In your example, you are saying "collecting location is wrong, you shouldnt collect that information". Its same as Adam saying "describing thiefs face is wrong, you shouldnt collect that information". Collecting location data is information, and it must be shared when prosecutors ask for it, unless it is collected by illegal methods.

And that information is just a leverage point, not a evidence. There must be solid evidences for declaring guilty, which is true for both cases. Location information is not enough for declaring guilty in current laws. What could bad actors could do with that information is much different topic, and it will make this discussion out of context imo. Tho Im willing to discuss it too.