Sending bitcoin to the same address?

I've heard quite often that it's not ideal for privacy to send your bitcoin to the same address over and over.. However, the programs I use generates a new address everytime I send bitcoin. Does the blockchain record the new address on top of the existing address meaning someone theoretically knows how much I have in bitcoin?

Forgive me for the ignorance, I'm still learning. The reason I ask though is because I'm confused about going on blockchain.com to view my transaction I've made, it states that the bitcoin address that has received bitcoin has only ever received 1 transactions. And it says that the total amount of bitcoin at this address is let's say 0.5btc because that's how much was sent to that address. However, let's just say hypothetically I have 2btc, does that mean that the 0.5btc can't be traced to my main address that now has 2.5btc because of the programs I use that change the address every single time I send.

Does that make sense and if so can someone explain what I may be missing? Thanks!