Probably yes, your sibling can see their locations. Apple treats an account as it would a single person. Right now Apple cannot tell you from your sibling. I can see the locations of people on my computer that I can on my iPhone because both are using the same account. That's why I think your sibling can see the locations of the same people on your sibling's device that you can on yours.
One of you needs their own account, as advised in: --> Make sure that each family member has a unique Apple Account - Apple Support
For a child (age varies according to country), read this support article about how to create an Apple ID for your child --> Create an Apple Account for your child - Apple Support
This support article describes how to create a new, non-child Apple ID = create an Apple Account. --> How to create a new Apple Account - Apple Support
If you decide to go through with this it may turn into a complicated procedure because it was never intended that people share an account, and Apple does not have an official account splitting process.