LineageOS already had this feature in Cyanogen as the Privacy Guard. It was taken out because of pressure from Google.
Edit: source here https://news.ycombinator.com/item?id=28096873
Privacy Guard also wasn't as complete as XPrivacy (and its evolutions) were. It's a shame that the feature disappeared, but I don't think it mattered much to begin with.
I myself removed that feature because the effort to have it was more of an hassle than anything else.
Looks like Privacy Guard was dropped because the rewrite wasn't worth the effort.
Sometimes I can't comprehend how people come up with that stuff when it was already publicly explained how/why it happened :/