You can disable the "send a list of nearby cell towers to Google's live database" setting, the "send a list of Bluetooth beacons to Google's live database" setting, and the "send a list of WiFi networks to Google's live database" setting, all without losing location access. Your location access will become a lot slower, but that's just a consequence of having to rely on GPS again, like we did before all of these extra features became available.
Google is even making their location history feature worse because they don't like how many blanket location history requests they're receiving from authorities, by moving location history to be stored on-device.
For years Google lied about consent users supposedly gave for some types of location tracking, but after they got found out (and the authorities got involved) they changed their tune.
So we can expect similar shenanigans when it comes to the "privacy sandbox".
And I will never trust google again after that with my person important data! No matter what day do now!
They claim they don’t record your history, but, at the very least, as a US company, they have to share it with the authorities.
If you could truly opt out, then it’d be much easier to use third party software without google play services installed.