Thank you so much again
I turn on location to "Battery Saving" to try, and I have the same question, why is the location necessary for wifi near?
Google has made this the case. I guess they felt WiFi networks can represent a location or maybe it's just another way to collect user data.
The "Scanning always available" seems to be available either location turn on/off.
It's a different setting so scanning requests can be done for example when device WiFi is switched off.
If an app attempts a scan without location services no results are returned. This doesn't extend to the system however as it still retains full access.