What it means
App Tracking Transparency concerns whether an app may track a person's activity across other companies' apps and websites. Location Services governs access to location data under separate iPhone controls. Denying one permission does not automatically switch off the other.
A real-world example
A weather app may have location access to show a forecast while its Tracking switch is off. The forecast can still work because local weather and cross-company ad tracking are different purposes.
What to do
Review Tracking and Location Services separately under Privacy & Security. Grant each app only the access its actual use requires and recheck after major app changes.
The distinction that matters
An app absent from the Tracking request list is not certified private. It may process information inside its own service or request other device permissions. Apple documents the Tracking control as a specific permission, not a blanket privacy guarantee.
Apple's tracking settings Apple's permission explanation