Hello,
The WooCommerce > Settings > Accounts & Privacy privacy policy settings are used on the My Account registration form and Checkout page when the corresponding privacy policy is added
The text shown there is displayed as the privacy notice below the relevant registration or checkout form. It is separate from the site’s main Privacy Policy page.
For example, on the Checkout page: https://postimg.cc/xqjJ13VQ
On the Registration Page: https://postimg.cc/6TDXmBct
Best Regards