Well there are 4 types of multi-lingual or multi-regional sites that are described here:
https://support.google.com/webmasters/answer/182192?hl=en
Summary - best is ccTLD, next is subdomain with gTLDS. On 3rd is subdirectory with gTLDS and URL parameters is last.
So Moz is trying to diving expert advise to webmasters to NOT use subdomains and giving famous blog example. I fall in this trap almost 15 years ago with subdomain. I wish someone to told me about this then... Other examples can be catalog and different products (catalog.example.com vs. example.com/catalog; product.example.com vs. example.com/product/). This advice in same subdomain keep link juice inside, but you probably know this.
GSC allow setting different directories to specific geo-location. That's true. But you can't change server location with subdirectories. With subdomain this is possible. Example - one company with site of Spanish and German. With subdirectory i have one server and /de and /es folders. But in this case server location is one and only. And server IP is some of signals for geo-targeting so you have tough choice where to be. With subdomain you can make de.example.com and place this in German server and es.example.com and place this in Spanish server.
That's why subdomains for multilingual sites is notable exception of golden rule "do not use subdomains".