The second feature you have to disable to limit this tracking is Web And App Activity. This is a bundled feature which means you can't choose the utterly reasonable status "improve my search suggestions but don't use my location". More importantly, the Google Privacy Checkup where you find this setting offers no hint that it involves location monitoring. Here's the text:
"Google is saving your searches and other Google activity. Google is also saving activity such as which apps you use, your Chrome history, and which sites you visit on the web."
I don't see why a reasonable reader would interpret that as building extensive location history. (Well, excluding "because they don't trust Google", which is kind of the point.)
Where are you looking? I don't see any of the terms or icons you're describing. (I don't doubt you, but Google tends to have multiple ways to access every feature.)
I'm going, on browser, to Privacy -> Your Privacy Controls -> Go To Privacy Checkup -> Start Now. On that screen, Web & App Activity has an overall toggle, a checkbox for including Chrome history and data from sites and apps that use Google services, and a Manage Activity link. There's no GPS icon shown, I genuinely have no idea what the checkbox does (that description covers everything I expect from 'Web & App Activity', so what's left if the toggle is on and the box is off?), and the whole thing is sitting right next to the Location History control in a way that strongly implies location data is in the second area.
The Manage Activity link brings me to a further page with searches and app activations listed, but the description still says nothing about location and I still don't see a GPS icon. I can't check specific searches, because I have this feature turned off. (I turned it on to test, but it doesn't update live.) I don't see Activity Commands or See More anywhere at all.
I also found a second, distinct page called Activity Controls from the privacy menus, with the same toggle/checkbox/manage options but a different description of what the feature does! (The text next to the checkbox is the same, and still completely unclear to me.) No GPS icons or use of the word 'location' here either.
I admit that each of those descriptions mentions Google Maps, but they do so in the context of autocomplete and faster/smarter searches. It looks for all the world like this page is about populating my Maps history by my past searches (which I do want) and not populating it by my location (which I don't want).
So, yes, this feature can be turned off. And I believe you that the specific searches have GPS data if you've got it turned on. But I just spent 20 minutes trying to find any sign that location data is stored here other than opening the details on specific links, using Google's recommended privacy-preservation feature, with instructions from other people, and still failed. This seems like a pretty exotic version of 'transparency'.
"Google is saving your searches and other Google activity. Google is also saving activity such as which apps you use, your Chrome history, and which sites you visit on the web."
I don't see why a reasonable reader would interpret that as building extensive location history. (Well, excluding "because they don't trust Google", which is kind of the point.)