All this is implying is that they are capturing this data anyways and offering you a peek at it for money with the guise that its for your safety.
There is likely no way for you to shut it off tracking you everywhere in your own home unless you pay them to access the settings for this feature.
They likely can track you behaviors with this and know when you take a shit, when you jerk-off/fuck your spouse, when you watch media, etc using machine-learning on the wifi specrum of your locations, signal shape, and duration.
Ask for just a plain modem and buy your own WiFi router. If that isn't an option, disable the routing functions and turn off the WiFi and buy your own router.
I haven't had a provider supplied modem or router in well over a decade. Not everyone has the know how to do this but it's not hard to learn and they should learn.
How hard it'll be depends on the provider. My provider's customer support explicitly told me that it is technically allowed but it is their policy to offer absolutely no help with that whatsoever for "liability reasons", and I'd be on my own if I got my router stuck in a misconfigured bridge mode where I can't access any settings anymore to fix things. They also told me to find my subscriber credentials on my own if I wanted to use a 3rd party modem.
My provider offers no help for it past the Dmarc either.
For the average person it's just plug and play or a guided setup. Most folks won't ever need or make any customizations to the setup.
For what you're talking about, that can be more difficult. I work in IT so not only do we have our own modem and router in place but I also run a home server setup.
Yeah, they used something like fluctuations in the WiFi signal, so you can turn it off. I suppose they could broadcast secretly without an SSID, but there are apps that will show it, so I doubt they would.