@Dan Thanks for posting in our Q&A.
For this issue, there is no method to disable location device. Based on my research, device location capabilities aren't supported for the following Android and iOS devices:
Android device administrator
Android Enterprise:Corporate-owned work profile, Personally-owned work profile, Fully managed
iOS devices are not in supervised mode
https://learn.microsoft.com/en-us/mem/intune/remote-actions/device-locate#supported-platforms
So, if you don't want to see "locate device", please make the devices as the unsupported types. If you are still interested in this feature, it is suggested to feedback in UserVoice. This is a place to collect customers' requirements. Here is the link:
https://support.microsoft.com/en-us/office/uservoice-pages-430e1a78-e016-472a-a10f-dc2a3df3450a
Thanks for your understanding and hope everything goes well with you.
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