Google was already in the middle of a class-action lawsuit regarding the incognito mode, where they were accused of tracking user activity. And, they agreed to settle the lawsuit.
To conclude that and move on, they will have to make the necessary changes to prevent another lawsuit against them.
Yeah. But you don’t get upvotes so easily by not shouting “Google bad!”.
While this might be obvious to you or I, it’s obviously not obvious to some people who think it gives them some semblance of privacy.
The only “private mode” of browsing is anything that’s not Chrome or Edge.