Just wow, socialism does not advocate panopticon surveillance, infact I don't think socialism has anything to say about matters relating to observation of the population.
While sure, it's true that some flavors of socialism don't, it's worth noting that public surveillance is a natural consequence of the creation of public goods. For example, are you going to take my word for it that I'm actually five hundred people, all drawing a public pension and all using up expensive health care at my personal health care facility which strangely enough has an abandoned parking lot as address and only employs a few dozen members of me.
To prevent such fraudulent overconsumption of public welfare-related public goods (a standard tragedy of the commons situation BTW), by necessity, they need to know that the application is a real human and relevant data to that applicant. The more services and goods provided, be it welfare or some other things, the more surveillance of its citizens needs to be done merely to protect the viability of what is provided.
Not only does this directly encourage more surveillance of a populace inching towards total surveillance, it also creates ammunition for a future tyranny. Health care records which can be used to prevent abuse of public health care can also be used in combination with other data to create a more complete understanding of would-be rebels and their associates in a society.