I've done some testing with AirTags. They use bluetooth to the iPhone, so range is severely limited. Inside a house I only get about 20 feet and outdoors 50 feet at max (especially on the ground). So they won't work like a GPS or as far as a fox trot transmitter, but they will work for finding a rocket in tall grass, cornfields, etc. when you are nearby. Supposedly, they use Bluetooth 5.0, so range should be hundreds of feet, but I have not seen that in my testing.
For those with an iPhone 11,12, or 13 you have a U1 chip in your phone that allows for precision tracking. The location and direction shows up on your phone within a few inches, so you don't need to hear it. The phone UI is amazing (with pointer) when in range.
All that said, the one cool feature of AirTags is that Apple uses EVERY iPhone as a receiver, so if you lose your rocket and you put the tag into lost mode, anyone else with an iPhone that comes within 50 feet of it could act as a pass-through locator for you (without even knowing it). In my testing it seems like another phone needs to linger near it for 1-5 minutes to catch the signal, check in with Apple, and then update the location in the cloud. A drive by in a car won't be enough. The batteries can last up to a year, so in theory if you lost it you would have a long time for someone to wander near it and let you know. There are people that have tracked cars, like a GPS tracker, with the AirTag, knowing there are always people around with iPhones to "forward the location" in the mesh-like network. I've often thought about using AirTags as a backup tracker for big launches in the desert. If you don't find the rocket you've got a year for someone else with an iPhone to wander near it and alert you to the location.