Hello JDub_406,
Welcome to Apple Support Communities.
We are happy to help you with motion detection for the Fitness+ app.
What you are seeing in Settings is expected behavior. As long as you have toggled on Fitness tracking, your iPhone will track your movement. According to your screenshot, you have this toggled on. Here’s additional information on tracking your daily activity: Intro to Fitness on iPhone - Apple Support
"Track your daily activity
With Fitness on iPhone, view your active calories and steps, set a move goal, track your progress, and see your movement trends over time—even if you don’t yet have an Apple Watch."
Here’s more on tracking your progress: Track daily activity in Fitness on iPhone - Apple Support
"Check your progress
Open the Fitness app at any time to see how you’re doing.
When you carry your iPhone with you, motion sensors track your steps, distance, and flights climbed to estimate active calories burned. Any workouts you complete in compatible third-party apps also contribute to the progress shown on your Move ring.
Note: You can add a Fitness widget that lets you track your daily activity directly from your Home Screen or Lock Screen. See Add widgets on iPhone and Personalize your iPhone Lock Screen.
An overlapping ring means you exceeded your goal. Tap the Activity area to see a summary, including total steps, your workouts, and more."
Let us know if you have further questions.
Take care.