Please don't delete your review after I answered your question. The answers may also benefit others. If you want to have a conversation, send me an e-mail instead of using the review system.

The extension's purpose is to prevent links in Google pages (Search, Gmail, maps, etc.) from turning into an unreadable, obscured link (see the add-on description for a clear example). The address bar has nothing to do with that. What you may see in the address bar are search suggestions, provided by the search provider that you have selected. If these links have an undesired format, then you need to find another search provider.

Can you show an example of a LINK that is not fixed by the extension? This extension only fixes links, not search queries from the location bar.

The specific URL that you've shown does not contain sensitive tracking information: Besides the query itself, it contains the timestamp of the search query and the source (client) of the search request.