Welcome to the app for my Fujifilm camera (only required because I wanted to update the firmware) that refuses to run unless you grant fine-grained location access. After upgrading the firmware I deleted the app because it has literally no other benefit.
Did it update the firmware over Bluetooth? Up until Android 11, Android required fine location permission to perform Bluetooth scans[1] because knowledge of nearby devices can be used to derive location.
Support apps for digital cameras generally require location access since a feature that many customers want, is geotagging the photos. Only some camera models have a built-in GPS, while other models rely on the presence of a nearby smartphone to provide the coordinates for the photo. Apps are typically developed to support a whole range of models, so they need the location access to support the non-GPS-equipped models.
This was the Android version. The Apple policy sounds more sensible. Even better would be a way to fake the permission (which I understand some non-Google Android variants allow).