that setting exists because it was old location tracking behavior, as part of our app battery drain steps we do recommend not turning on this setting and indeed in the past we have seen users with similar issues get solved after turning off that setting.
https://companion.home-assistant.io/docs/troubleshooting/faqs/#android-app-battery-drain
Some custom ROM users do find the setting helpful as they have incomplete google service integration.
we also mention in the location docs that those settings typically should not be touched for that sensor but i think during troubleshooting some users may turn it on by accident.
https://companion.home-assistant.io/docs/core/location#location-sensor-settings