Why would disabling personalized ads
necessarily disable tracking? [EDIT] Consider: toggling the display of something does not necessarily change the underlying data, or data collection, behavior.
Why would all data used to personalize ads have to be tracking? It could also be things like purchase data from the very service that's advertising to you. Halting collection—not use for ad personalization, but collection—of that would go beyond what even I would consider tracking (and I think most of what goes on in the ad world today should simply be illegal). It would be possible to personalize ads only based on this kind of thing—in fact, that's what the article seems to imply is going on, at least in part.
So there are at least two ways that setting might mean something different from one that disables tracking.