This is the same as iOS and my understanding is that apple and google are categorizing multiple features as location services including Bluetooth low energy, access to WiFi AP’s as well as traditional GPS. The contact tracing apps only use BLE to figure out which other devices your phone came into contact, but since BLE exposes certain commercial beacons, it can technically be used to locate you.
Allegedly, that’s not what is happening here, and I doubt that the language will ever change.