"To access the hardware identifiers of nearby external devices via Bluetooth and Wi-Fi scans, your app must now have the ACCESS_FINE_LOCATION or ACCESS_COARSE_LOCATION permission"
Yep, there exist databases of the geolocation of nearly every Wifi AP in the world. If you have the MAC address of nearby APs, you can lookup where you are trivially.
Doesn't surprise me, Android itself is more invasive than rectoscopy I've recently discovered. The amount of tracking google tries to do is absolutely mental and neigh impossible to circumvent. It seems fitting that they allow this.