I don’t know why Android is asking, but I may be able to explain the concept of “We don’t need location but its permissions are tied to something else we do need so it’s enabled as well” – at least as it applies to Apple products. Maybe @UserCustomerGwen can further clarify for Android.
Apple says SSIDs (network names) can be used to track your location. So in iOS 13 they made a requirement that only apps with permission to see your networks are allowed to see them. Because this is now considered a location-related permission by Apple, they are doing that using the specific app’s location permission setting. So if your location permission for the Wyze app was off, you would not be able to see local network names from the app.
When you do absolutely need that permission turned on, like with Plugs and Bulb setup, you can turn the permission off again as soon as the device is set up (System Settings > Wyze app in iOS).
So for iOS 13 with Apple at least, access to networks names equals allowing location info access by the app. That’s one possible explanation for “We don’t need location, but its permissions are tied to something else.”