The lawsuit alleges that, as it was presented to the user, it is reasonable to assume that turning off Location History would stop collection of location inform

The lawsuit alleges that, as it was presented to the user, it is reasonable to assume that turning off Location History would stop collection of location information entirely. If location information is still captured and fed to Google via other channels then the privacy settings need to make this obvious. So the user can give or deny consent. It isn't about what the application can do or should do, it is about getting informed consent for the implemented behavior.