Whilst I also had a bad taste in my mouth once I got to them shilling their product (it was a double-check - wait a sec this Nitro phone they're talking about it's their own bloody phone?) that doesn't change the fact that this unexpected behaviour is a problem.
What we need to see is the actual HTTP requests, either from Nitro or - even better - from a third party who verify it.
Some GPS chipsets will perform A-GPS internally using a baseband IP stack, but most smartphones actually don't and expect a daemon to handle it since the OS has more sophisticated ways of deciding what network connection to use for the download. This is the most common case for Android, the OS downloads the file and uses a kernel module to provide it to the GPS chipset. The chipset vendors, including Qualcomm here, provide this service as part of their userspace components.
An IIOT LTE module I use has an onboard IP stack and AGPS implementation since it's intended for use in contexts where there isn't necessarily a conventional OS connected to it, maybe just a serial data logger or whatever. The A-GPS requests it makes contain so little data it's a bit comical, the bare minimum for a valid HTTP request. Another reason it's nice to have the OS do it is since that tends to get you access to a more complete HTTP library.
Nitro have made rather large claims; if they're real security experts then they need to share the details or GTFO.
But it's basically just fetching https://xtrapath4.izatcloud.net/xtra2.bin with cron (or some other subdomain, depending on the SoC) and uploading that to the gps module so it has atmospheric corrections.
D-GPS uses the known location and current readings from a nearby fixed receiver to increase the accuracy of your receiver, and does rely on knowing that you're in the vicinity, but it's not a feature of consumer phones.
edit: y’all are reading this backwards. My point is that the Qualcomm server does not know the location of the client and therefore cannot usefully send anything other than a static file.
Basically your phone uploads sensor data like cell tower strength and WiFi strength, and their service estimates your location. The your device locally uses gyro/accelerometer to fine-tune.
See Qualcomm Location Service (formerly “IZat Location Services” or “IZat”) on https://www.qualcomm.com/site/privacy/services