DeletedUser232 What could possibly happen if I use a same IP address to acquire the location data (SUPL, PSDS, Network location) and the service that I am trying to visit anonymously? Does using the default GrapheneOS proxy helps againt correlation attacks?
The location lookup connection to GrapheneOS proxy service is HTTPS encrypted, so no one between you and GrapheneOS proxy service can see your location information at all, not even your VPN service provider or their ISP.
Likely, the service you visit anonymously is also HTTPS encrypted.
So, GrapheneOS proxy service will see your VPN IP address and exact location, and the service you visit anonymously will see the same VPN IP address, but no one else should see anything of privacy or anonymity concern. There is a correlation there. For most people, this is probably not that much of a concern, but if your threat model involves GrapheneOS being coerced to surrender the exact location for the user who used a specific VPN IP address at a specific point in time, it might be a concern.
Ideally, you should never mix real life activity and anonymous activity over the same VPN connection. Because even if there are mitigations such as HTTPS, the correlation is nonetheless already there.
Just the same as you should never login to a service with your real life account over the same VPN connection you are also using for anonymous activity. Ideally, keep real life activity and anonymous activity on separate user profiles, with separate VPN nodes, and have location services completely disabled in the user profile for anonymous activity.