This appears to be a bug in 11.3.1 however users of other versions are experiencing the same problem. It is important that you report this issue to technical support as they need to know about the issue in order to rectify it.
I have posted this elsewhere, but will repost for your convenience.
'Limit Ad Tracking' is tied to your Apple ID and functions as follows.
1) If you are signed in with an Apple ID:
The 'Limit Ad Tracking' toggle is subject to the Apple ID advertising platform preference, and not the device you are using. Restrictions cannot override this. For example, if you toggle ON 'Limit Ad Tracking' then activate Restrictions for Advertising, the 'Limit Ad Tracking' toggle will become faded but still visible as green (ON). Now if the 'Limit Ad Tracking' advertising platform preference that is tied to your Apple ID is set to OFF, then when you exit Settings and relaunch Settings you will see the toggle has changed despite being Restricted (only if you are experiencing the bug). The key here is the spinning wheel on the toggle when you relaunch Settings, this indicates communication with the Apple Advertising Platform is taking place, and Settings is requesting information on the advertising platform preference tied to the Apple ID for 'Limit Ad Tracking'.
2) If you are NOT signed in with an Apple ID:
Or if you are signed in but then sign out, the toggle is subject to the Device setting. Restrictions will then be obeyed until you sign in with an Apple ID, at which point the Apple ID advertising platform preference for 'Limit Ad Tracking' becomes master again.
"If you chose to enable Limit Ad Tracking, Apple’s advertising platform will opt your Apple ID out of receiving ads targeted to your interests regardless of what device you are using."
https://support.apple.com/en-us/HT205223
Currently there appears to be a bug, whereby some users cannot change their global preference for Limit Ad Tracking tied to their Apple ID.
Be forewarned, you will be hard pressed to find anyone at Apple Support who will understand even the basics of how this works. Only the people at Apple Engineering will understand, and you cannot speak to them directly, so you will have to communicate through their archaic man in the middle system.
Have fun :/