If this is true it is more evidence of a broken legal system.
But the legal system is not fixed. Culture changes and the context in which we interpret laws change. There might not be precedent for getting a number wrong in a phone book, but we barely use phone books anymore, and market mechanisms don't work. I agree with you that it might be difficult to prove standing (the persons whose photos were used were likely to have standing, I think, but IANAL), but it _is_ important that we bring these cases to court and try to gain a new legal precedent.
I suppose you can argue that these knowledge panels are uniquely bad. But any uncommon name that you share with someone who is plausibly you on cursory examination has the same problem--regardless of search provider. If a potential employer or date turns up "your" criminal history, especially for the "right" age range and location, a lot of people will close the browser and move on.
But the legal system is not fixed. Culture changes and the context in which we interpret laws change. There might not be precedent for getting a number wrong in a phone book, but we barely use phone books anymore, and market mechanisms don't work. I agree with you that it might be difficult to prove standing (the persons whose photos were used were likely to have standing, I think, but IANAL), but it _is_ important that we bring these cases to court and try to gain a new legal precedent.