Hello clazz96.
Thanks for reaching out to Apple Support Communities. We understand that you are seeing a blue outline around a contact's picture when viewing there location. We will be glad to assist.
From About privacy and Location Services in iOS and iPadOS
"Apps that can show your location on the screen, including Maps, show your current (approximate) location using a blue marker. In Maps, if your location can’t be determined precisely, you’ll see a blue circle around the marker. The size of the circle shows how precisely your location can be determined—the smaller the circle, the greater the precision. When Location Services is active, a black or white arrow icon appears in the status bar."
Cheers.