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And for some strange reason, the ability to pair with Bluetooth devices. Which I have no idea why it exists, I can't find a single service that the app has access to which would require that feature.

Probably to use Bluetooth beacons.

To communicate with Bluetooth readers instead of using QR code scanning.

This probably has something to do with the ISO 18013-5 standard.

https://medium.com/@dkelts.id/mobile-driver-licenses-mdl-how...

Google Play includes permissions that have been taken out in the latest version of an app https://twitter.com/ServiceNSW/status/1189390044273856513

IIRC a former developer explained (on reddit?) they explored other functionality like bluetooth LE verification rather than QR code

The photo permission is to verify someone else's digital ID by capturing their QR code.