Wikipedia suggests it gives access to certain information which all look like data Google would want to track. I don't think I'm crazy to assume Google is doing something fucky while it gets values when requested on by an app, or whenever the heck they want.

Disable it and it will bitch notifications every often, every day, and that can't be disabled. It claims it need to be on for your phone to work but not so in my case when I only use apps from F-Droid (like a dialer, text message, calculator, Lemmy client).