Yeah these are constantly being used which is probably why the icon doesn't go away, but there is a toggle in that setting screen that allows you to "hide" the status bar icon when a system service is using location. That toggle seems to be broken.What Location Services > System Services do you have on? Anything like Cell Network Search, Compass Calibration, Motion Calibration & Distance, WiFi Networking, Routing & Traffic? I think when these get triggered, they cause the icon to show. Not sure how long before they go away, but maybe this is it? Just a thought.
In iOS 10, having the toggle off, would only display icon when apps others than system services were using location.