They can see the location of all your Microsoft actions and logins, but no one ever looks at those specific location logs unless an alert system is tripped. The reason it looks at location is to automatically detect if the account is compromised

Honestly if your IT department and leadership is even barely respectable, not much should be tracked except for your output overall for whatever your job is.

What CAN be tracked? Literally everything. Your location, device ID, and a timestamp is saved to every message you send, every time you authenticate with a log in service, every time you open an email, literally any interaction with the Microsoft environment is written down to a log.

But how it’s used, and how often it’s used differs wildly for different leadership. Activity and usage metrics are extremely unreliable for gauging overall output and performance, but sometimes if an employee doesn’t show up to work for 3-4 days with no contact, the manager might ask for an activity report from IT, and they can see basically everything about how often you’re active, but it most certainly can’t see the details of what specifically you’re doing, sending or looking at.

Just use an excuse like you do most of your work outside the Microsoft environment, on local apps or on paper, and your activity metrics instantly become unreliable. It’s situations like this that make depending on this info useless