

This is what I gathered on the subject, feel free to correct if anything is wrong:
The WiFi tracking works by scanning for nearby WiFi networks, identifying which routers are nearby and their signal strengths, matching those against their database of known WiFi access points, and using that data to estimate your location.
For now the feature will be off by default, first has to be enabled by your company, and then the user has to opt in for it to be used.
For those who are required to use Microsoft products, it can by bypassed by using a wired Ethernet connection and not using Teams on any devices using a wireless connection.
Edit: As @[email protected] pointed out, Microsoft is not using WiFi positioning systems to determine location, but rather updating your location to “in the office” or not depending on whether your device is connected to one of the organization’s WiFi SSIDs.

Thanks for the clarification. I wrongly assumed Microsoft was using Wi-Fi positioning systems (which is used for geolocation, just not in this particular case) instead of reading their documentation.
I’ll update the comment.
I also don’t think most workplaces are going to punish you for opting out of this feature even if organizational policy requires it to be enabled.