From my understanding, this was extremely overblown. They apparently have a pretty standard privacy policy, and the concerning parts only applied where they legally had to- like China.

Pirate Software has a whole video where he goes through their privacy policy and talks about it. Personally, I trust that more than I trust Steam reviews and randoms on social media.

Frankly, I just kind of assume all Chinese games/devs are going to have privacy concerns and that disregarding your privacy is a requirement for engaging with them.