From Apple supportapple should make it clearer for people, confusing a lot of people lol.
If you turn off "Allow Apps to Request to Track" in privacy settings, you'll stop seeing prompts from apps that want to track your activity. Each app that asks for permission to track while this setting is turned off will be treated as if you tapped Ask App Not to Track.
If an app asks to track your activity - Apple Support
App Tracking Transparency allows you to choose whether an app can track your activity across other companies’ apps and websites for the purposes of advertising or sharing with data brokers.