Earlier quoted context omitted.
That's not true: when location is turned off, location is turned off. Apple still has a loophole where turning off Bluetooth doesn't turn off Bluetooth, but location should be "fixed"
Your cell phone company knows the tower you are talking to and probably which (directional) antenna you are talking to. Antennas are in the process of getting a lot more directional with 5G, so they'll soon go from trivially being able to track you within a block or two to within a meter or two. It's not great.
If they really want, they can see the distance from the tower because that's a requirement for the communications protocol to work (LTE at least expects to account for lightspeed delay in allocating transmission slots) and gets measured during the communications, so the operator should be able to see that distance to the granularity of something like 100m (or is it less nowadays?); but AFAIK that's usually not stored unless you're in a 911 call or perhaps with some tracing warrant.