Even in a tech utopia something like this existing would make it not a utopia to me, since I don’t see a similarity between regular voluntary posted texts and social media submissions and a persistent recording device.

Like the social situation automatically means people who come in contact with them are being recorded against their will. When it comes to IMs in your example people can choose to participate or not, but this tech is not the case.

Unless there is some Black Mirror type built in privacy block of people showing up as glitched out avatars if they haven’t opted in.