Apple released its latest OS versions this week, including the iOS 14.5, iPadOS 14.5, and tvOS 14.5. As a part of the update, apps will not be allowed to track users’ activity for advertising purpose, without users’ permission.
Users can manage tracking permissions in the settings option. There is also an option to "Allow Apps to Request to Track" that can be turned on for all apps. If this option is toggled off, it automatically means that you have not allowed any app to track you.
However, Apple has recently revealed that there are certain circumstances where the "Allow Apps to Request to Track" setting is greyed out. The conditions are: child accounts or users under age 18 by birth year, signed in with their Apple ID, an Apple ID managed by an educational institution or that uses a configuration profile that limits tracking, and an Apple ID created in the last three days.
Some users have been spotting issues with the app tracking option, where the toggle is greyed out even if they do not fall under any of the conditions. This suggests that there may be a bug or some technical issue with the setting. Apple has not yet confirmed the assumption.