Why didn’t they just turn off the feature though? The wording they use “tracking” is so negative no user will ever reply yes to it. Maybe to educate users about privacy?
The screenshot in the link posted explicitly states apple does not track (maybe how they justify not using the word) you for their advertising network, so what are they doing instead?
(Like seriously, what a terrible hill to die on)
Apps can still display ads. They may not build a user profile and attach it to your identity across apps.
For example, Google can track you across the YouTube app, the Google Maps app, the Gmail app, and anything else owned by Google itself.
Apps do need to disclose this in the App Store privacy labels, but there isn't much to prevent them from lying.