They spy on your network behavior by default, so free users are still paying with their behavioral data. See https://tailscale.com/docs/features/logging
“Each Tailscale agent in your distributed network streams its logs to a central log server (at log.tailscale.com). This includes real-time events for open and close events for every inter-machine connection (TCP or UDP) on your network.”
They know what you're doing, when, from where, to where, on your supposedly “private” network. It's possible to opt out on Windows, on *nix systems, and when using the non-GUI client on macOS by enabling the FUD-named “TS_NO_LOGS_NO_SUPPORT” option: https://tailscale.com/docs/features/logging#opt-out-of-clien...
It is not currently possible to opt out on iOS/Android clients: https://github.com/tailscale/tailscale/issues/13174
For an example of how invasive this is for the average user, this person discovered Tailscale trying to collect ~18000 data points per week about their network usage based on the number of blocked DNS requests for `log.tailscale.com`: https://github.com/tailscale/tailscale/issues/15326