Two main reasons:

- trains go in tunnels or tracks are between houses. When train control systems were defined in the 1990's, there was no way to make them sensitive enough to record GPS positions. Instead there is a different location system based on so-called balises with a fixed position on the tracks. Every time a train crosses one, it knows where it is.

- Planes go in 3 dimensions, trains in one. If ATC wants to ensure two planes do not collide, they will assign them different headings and/or heights. Precise position isn't that important. Trains cannot avoid each other, that's why they move in blocks.

And yes, they do signal their position back to the control center, it's just a different protocol

Modern signalling systems are basically adsb for trains. (ETCS is the modern standard in Europe, this line was using the older German LZB). Problem is that they can, and do, fail. And when that happens too frequently (as it seemingly has been in Spain due to a lack of maintenance), its easy to get sloppy on the manual handling

Safety systems don't help much when they fail themselves. E.g. usually there are automatic systems in place that prevent that two trains are on the same rail network section at the same time, but this system apparently has failed. Details are in the article.