I think the issue is, or at least was, that Google assumes that if you are willing to share your location via BLE, which could be guessed by sniffing for BLE MAC addresses, that you're at the same time willing to grant high resolution GPS access.
I get it that BLE MAC addresses can provide very detailed location information, in my case my thermostats/valves broadcast MAC addresses all the time, so if they are sniffable, it is known that I'm at home, but this is not the case when I'm on my bike or in my car, where maybe there's the address of the bike computer or the car radio, because these are traveling along with me, giving no positional information.
Once I meet other people or walk around some streets, geolocated BLE MAC addresses will be present again, but it still isn't the same as high resolution GPS. GPS doesn't require an additional database lookup from a database which the "spy" may not even have access to, it directly sends latitude, longitude and accuracy.
It's annoying that Google neglected or still neglects this.