Im glad that people in your office are responsible enough to keep their teams status updated but many don't and in a big company with majority hybrid workers this will be a useful feature and I look forward to it being enabled since im always in office.
Your comment is wild I have to ask what you think you're fighting here? How does updating a teams status to display if you're working in the office or at home over step boundaries and open the floodgates for big scary control schemes? If its a company device this changes nothing, if they want to track your location they wont be using this teams feature. if they want to micromanage you or spy on you they wont be using this teams feature.