I have no idea. It's related to a feature on GOS that's not in AOSP (if I remember correctly), so it's possible it's a GOS bug, but then again I don't know how they implemented it, so it could also easily be an AOSP bug. The only way we could know for sure is to find the code in GOS to see how they implemented the location access indicator.
Not sure about emulator tags. I have a Pixel 6. Not sure which tags are associated with Pixel 6. I'm more inclined to think it's a UI thing that would be the same across all phones, whether it's GOS or AOSP.