I don't know what Apple is looking for. The iPhone ships with a Weather app preinstalled, you allow it to your location so it can warn of severe weather, and several weeks later "OMG WEATHER APP IS USING YOUR LOCATION!!11!".

Same with MDM agents. Ours are installed automatically as part of the Apple Business Manager configuration, we manually grant them precise location in the background, and months later "HEY USER, WANNA BLOCK LOCATION FROM 'MDM SERVICE'?".

Edit: To avoid replying to the two following comments with the same reply, my gripe is not about the notification, that's a good thing; my gripe is with their implementation, which seems very in tune with Apple's way of complying with regulations. There are definitely many user-friendly ways to handle privacy compared to seemingly random notifications.