My… Guess is that it’s still another data point attaching your IP to you. I haven’t really dug into how true that would be, but there is def fingerprinting stuff that could be shared without location permission. I.e. just a web request gives them your phones ip. Now that might be your cellphone wan ip, That might be your home ip etc… still identifying info.

Imo this isn’t so much about tracking your literal location (though, that too) but also in tracking you across websites without permission.