Does this put "telemetry" in Git itself? If you're just using git to access Github, is it snooping on you?
No, OpenTelemetry is focussed on gathering metrics in distributed systems. Metrics, log aggregation and tracing of requests from the entrypoint (load balancer) all the way to the backend services and data stores. Take a look at the Jaeger and Zipkin websites and it should be pretty clear what it is used for.
It's baffling to me, what do people think happens when they pull/push from a GitHub repo?