When I went to see Google's My Activity, I noticed it actually recorded several elements from my usage of applications on my phone (Nexus 5X, with Android 7). For instance, it showed me that it knew I opened a game yesterday, as well as several other applications.
I don't remember seeing this when I was using Android 6, though I haven't used My Activity extensively so I don't know.
Is it possible to prevent Google from collecting this stalking personal data at all? If yes, how?
Yes, you can prevent this data's collection by Google.
Log into your Google account on the web and visit "My Account".
From the section "Personal Info and Privacy" select "Manage Your Google Activity"/Activity.
Selectively remove permissions from the presented sections:
Selectively turn off all or some, to taste, though you would probably get a big benefit from the first section.
This is not specific to Nougat but based on Marshmallow , so am guessing it should pretty much be same
New look and scheme was reported in June this year - Google launches new My Activity site, reaffirms Google knows basically everything about you
On my activity page select activity controls
You can control ( enable / disable) the following:
Web & App Activity
Location History
Device Information
Voice & Audio Activity
YouTube Search History
Google would know nearly all you did if you don't disable, so stalking isn't far off the mark !