I had the feeling that physics has moved on from the idea that spacially bounded objects located in spacetime (such as particles) can be fundamental. Instead, QFT describes everything by quantum fields which are better considered as an everywhere present property of spacetime rather than embedded in it. From this perspective, it always felt to me like string theory is a step back, talking again about bounded objects located in spacetime (i.e. "free floating strings", as this answer states).
Question: Is there a flaw in my understanding? How can free floating bounded strings give rise to spacially extended quantum fields?
I am a mathematician and fine with advanced mathematics, but am a layperson when it comes to physics (you might consider me as an undergrad in this respect).