I get the Calibrate with the camera (outdoors) thing all the time during a day. It does give me a break for a few days, and I mostly ignore it now. It should be built in if you have a compass sensor. It's validating iother location information I imagine and this is a pretence to confirm Street View information or something more sinister.
I complained about it to Google in a Feedback question, and expect my query to be looked at and binned by their remaining adolescent hunan some time in 2037.
Besides the privacy issue (especially as it can tell what car you're sitting stationary in or who is around you), if it recognises a street scene or building for example it will say its now calibrated; but you can return to Maps two minutes later and it wants to be calibrated again.
Before the calibration via camera in the last idk year or two it would only ask you do the figure of eight thing, and that's still an option. I don't think you can physically rotate your arms in that manner without swapping hands but that's another matter.
I have all Assistant stuff turned off as much as I can.
My phone has a good Compass sensor along with a Barometer and has a very good Compass app pre - installed that can switch to an altitude screen. May be that affects the Maps "accuracy" now you mention it, but unlikely.
The intended point of calibrating is then having your blue dot location indicator display an outer triangular arrow as well to indicate which direction the phone is looking at, useful as you first set off on a route you just set, but thereafter not totally necessary though useful.