A user does not show up in “People nearby” unless they enable the function. Doing so triggers a warning from Telegram informing you your location is about to be published and it may lead to undesired attention so it really can’t happen by accident.
I’m also using the app on iOS, the operating system asks periodically if I want to continue sharing location in the background (in case I forget to turn it off) or I can just choose to enable it while using the app (which is what I usually do).