They are collecting health information and a category called "sensitive information."
Fighting to keep apps from gathering my location is old news. Many also want my photos, and I don't trust them enough. Meta's policy is a whole different level of creepy.
Yes, "people of color" is considered respectful.
And you're right, language can change pretty fast. I've seen plenty of respectful words become slurs. I've even seen slurs be reclaimed by communities. Don't even get me started on person-first vs identity-first language.