Bitcoin is and has been highly scrutinized for years now, and there's no way any legitimate ATM operator is going to get away with granting low fees and maximum privacy to the people who use their machines. That's not the world we live in, unfortunately.
A harsh reality. The governments and authorities know they can't take away the privacy of every Bitcoin user, so they will always make use the opportunities they can find, and in this case, it's the Bitcoin ATMs that they scrutinize because they know, some people would want to use them, so they have enforced KYC for them, and as you mentioned, security cameras at ATMs are a norm, be it normal ATMs or Bitcoin ATMs, they would want to have your footage in their database.
I've also always wondered why people use Bitcoin ATMs when they can more easily and conveniently purchase Bitcoin online through different platforms, and we still have decentralised P2P platforms such as Bisq for those who are too privacy-conscious and don't want to use centralised platforms. For me, I think using a centralized exchange for buying Bitcoin is way safer than using an ATM, even though both require KYC, at least the first one wouldn't give you the fear of getting chased by muggers and robbers.