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Frequent location is already disabled, still the location indicator appears every time I unlock the iPhone.
Have you looked in the "System" section within the location service options? Anything that recently accessed your location should have a purple location arrow next to it.
 
I had this problem with iOS 14.4.2 on my iPhone 11 where it would act slow and drain the battery faster than normal (i.e. in less than a day instead of the typical 2-3 days I normally go without charging). It turned out that iCloud was continuously syncing the files in iCloud Drive. It would sync a few hundred MB per hour from my phone even if no file had been updated. I only realized what was happening when I ran out of mobile data two months in a row, which otherwise never happens. When I checked my cellular data use in Settings I saw that 22.3GB of data had been used on "Documents & Sync", and this was while working from home with continuous wifi connectivity for most of the day. I solved the problem by logging out from iCloud, restarting the phone, and then logging back in. Perhaps this is what's happening here?
 
I haven't disabled Location services globally since I want Maps and Find My apps to be able to provide the location.
I read somewhere that widgets access your location when you unlock the iPhone but the only widgets I have are Calendar, Notes and Shortcut all have location diabled.
Have you tried disabling location services and see if this produces a change in battery drain?
 
For me turning off wifi calling fixed the getting hot issue, battery is better but still not as good as it used to be - 12 Pro Max
 
I wonder if some of this battery issue is due to the AirTags. From what I read they use other Apple devices to keep track of location of Tags - so if you don't know where they are they can be located. Not at all sure of this but supposedly the advantage they have is that there are so many Apple devices out there helping track
 
Airplane mode while connected to wifi is still working well. I only have to charge once a day to 80% and I get through the whole day with around 40% left. I am still able to make and receive phone calls and SMS texts. This appears to be a very widespread problem and I assume multiple things are causing the battery drain just from reading all the articles about it. I am surprised that Apple has not even acknowledged the problem and has allowed it to go on this long. I am expecting Steve Jobs to rise from his grave and walk over to the Apple campus and personally fire someone over this. It's that bad.
 
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