This clearly isn't OK. I want to choose between an app that asks for what it needs to work and an app that ask everything it can, before installing it. It's a dark pattern.
The new data safety section lists things that look like permissions as well. Should permissions be clearly listed in the new data safety section? I think it would be more helpful that way.
Don't you have more context to understand and grant the permission request at runtime? For example a banking app might want access to the camera for depositing checks, but until I'm actually depositing a check it might not be clear why it would want to use the camera.