I just took a walk around my neighborhood with my IPhone 11 configured as you listed above and the tracking arrow moved as I did. And it was precise, when I got to a corner, the arrow was right there also.Went out for a road test and had a bunch of problems, it asked for permission then opened with no errors, but my position would not change as I moved. When I made that previous post, I somehow managed to turn off "share my location" in step 2 below. I believe these 4 things have to be set on the iPhone. Let me know if this is the way it works on your phone.
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When I viewed it earlier today I thought the Pointer was a dot and now it’s a blue arrow. I could be mistaken, just something I notified. The arrow is great and points in the direction I’m headed.