only if you have that feature turned on. Google also records data outside of maps and timeline, IIRC. I imagine you can always access your complete location history by exporting it from Google's take out feature.
correct. turning off “location history” only turns off the visualization, not tracking. your location is still associated with each piece of google activity—searches etc. there is no way to totally turn off location tracking other than tuning off “web and app activity”—which then locks you out of several google services entirely.