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It kind of makes sense, in that it’s possible to use data on what radios you can see (particularly WiFi SSIDs) to work out a user’s location. Still causes no end of hassle from customers complaining about you requesting location permissions to connect to a WiFi device though.

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I suspect they do this to be able to configure Bluetooth within regional regulations. In US / China you can transmit with up to 20dBm output power at 2.4 GHz, while in much of the world 10 dBm is max.

The location permission is not needed to use Bluetooth on Android, but apps must request it to be able to scan for nearby access points and beacons (both for wifi and for BT), since this information can be used to infer the device's location. Fun fact: turning off location services without revoking the location permission still allows apps to scan for wifi access points and infer your location with impressive precision. The list of apps that have the scanning permission is hidden somwhere deep in system settings.

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