Upgrading to iOS 14 does not magically turn it on.
Huh? You know it's an opt-in feature, right?
When Bluetooth is on, your iPhone broadcasts itself with a rotating random MAC address (a feature now called Bluetooth LE Privacy). It rotates at a fixed interval, something like every 5 minutes.
With contact tracing enabled, your phone broadcasts another random identifier, and that identifier rotates at the same interval as your MAC address. The random identifier is actually cyphertext, and the key to decrypt it is stored on your phone.
I think it should have been turned on by default if Bluetooth is turned on by default, but people would have complained very loudly.
Isn't this only when the iPhone is "discoverable", which is pretty much never the case unless you have bluetooth settings open?
I'd be shocked if it doesn't remain opt-in, for all sorts of reasons.
But I would also suggest you learn how this feature works in the first place, it's an interesting design that makes clever use of Bluetooth and cryptography. It's likely much more private than the way you have your device set up right now.
The complete specs, including what is being broadcast over Bluetooth and the cryptography used to preserve privacy, are available here (the Google and Apple system are one and the same): https://www.google.com/covid19/exposurenotifications/#exposu...
These are pretty technical, but this is a good high-level overview: https://www.google.com/covid19/exposurenotifications/#grid-h...