Firefox 126: New Search Data Telemetry, Improved Copy Without Site Tracking, Security Fixes, and More
mozilla.org
Telemetry was added to create an aggregate count of searches by category to broadly inform search feature development. These categories are based on 20 high-level content types, such as "sports,” "business," and "travel". This data will not be associated with specific users and will be collected using OHTTP to remove IP addresses as potentially identifying metadata. No profiling will be performed, and no data will be shared with third parties. (read more)
The Copy Without Site Tracking option can now remove parameters from nested URLs. It also includes expanded support for blocking over 300 tracking parameters from copied links, including those from major shopping websites. Keep those trackers away when sharing links!
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To know what features people are using, how fast it's running, know what hardware and where it's being used, and to try to investigate crashing issues? Telemetry doesn't only mean knowing where you live or who you're banging.
None of those things are what's being discussed here, or what GP asked about. As stated in the article, this is about categorizing people's searches.
Because that allows them to sell the default search engine spot for more; the more you know about an audience the more it’s worth, even this high up the food chain.