I’m sure it always done so. I’ve been aware of this the moment incognito mode was introduced.
Edit: here’s an old screenshot of Google chrome describing what incognito is: https://tfpcservices.net/software-tips-3/
Nowhere on that page does it say that the browser is still tracking them. The whole point of the lawsuit, which Google just settled, is that that verbage is not clear enough to nontechnical users that Google still knows what sites they’re visiting. People don’t know shit about computers, if they advertise a “privacy feature” that says their searches and history aren’t being saved, they assume they’re not being tracked. People absolutely should have a basic understanding of data privacy but that doesn’t mean it’s okay to take advantage of those who don’t.