I hope nobody is putting a few MB of data in my localstorage either. If you use Authorization header, the token can be extracted by XSS etc. and sent to malicious servers and they can then use it however they wish.
If you use a secure; httpOnly cookie it can't be stolen by malicious JS and is bound to your browser's security model. Add to that proper CSRF tokens, and e.g. sameSite=strict and you've got a decent system.
We're a place where coders share, stay up-to-date and grow their careers.
We strive for transparency and don't collect excess data.