"...the LM had an Alignment Optical Telescope, and could only determine the craft's orientation."
(Not without seeing stars. And that still doesn't give you your position. How do you calculate a trajectory??? You can't.)
The LM's AOT is only
one part of its guidance and navigation system. Its primary purpose is to align with respect to the stars a gyroscopically stabilized platform able to read the Euler angles of the LM's orientation in inertial space. The system also includes three orthogonal accelerometers, a computer with a gravity model, and a ground radio tracking network.
The gyro platform allows the computer to resolve the accelerometer data into inertial coordinates. The computer then numerically integrates the accelerometer data to update the vehicle state vector, its estimate of its position and velocity. It did this every two seconds, regardless of whatever else it might also be doing.
That's how you calculate a trajectory, and this is how
any inertial guidance system operates, including those on civil aircraft.
Every inertial guidance system requires initialization to a known state. The primary method of doing this on Apollo was radio tracking from earth, which could measure to extreme accuracy the range (straight line distance) and range-rate (rate of change in straight line distance) between ground and spacecraft antennas. The earth antenna positions were known very accurately, and so were the trajectories of the spacecraft. The ground periodically loaded the new state vectors directly into the onboard computers; you often hear the Capcoms ask the astronauts to give them "P00 and accept" to allow this to be done. (POO, pronounced "pooh", refers to executing program #0, the idle program. The block/accept switch allowed the computer to accept the uplink data.)
As a backup in case communications were lost, the command module astronauts
could use their optical instruments to determine their absolute position in the earth-moon system. So the assertion that telescopes were good only for orientation is simply false. This was done by sighting stars against the limb of the earth or moon. Jim Lovell practiced this intensively during Apollo 8, and his results were just as good as those from ground radio tracking.