iPhone 13 "precise location" in maps or "precise location" in maps under "Siri & Search" setting

Why is it necessary to turn on "precise location" when asking Siri for directions to a specific location when driving or when asking Siri for directions to the nearest Starbucks for example. If Siri could give me directions on an iPhone 6 without having "precise location", why does an iPhone 13 require it to be turned on? Doesn't make sense to me. "Locations Services" is turned on, but I have "precise location" off.

Thank you!