That's okay, that's the default and means you're getting location via GPS, and not Google Play Services.
GmsCompat is a system app. It is the compatibility layer developed by GrapheneOS which teaches Google Play Services to work within the normal app sandbox. Apps sometimes try and make location requests using it. I believe it is when an app expects to use Google Play Services for location requests, but in the default case, requests are forced via the OS, or they fail.
To investigate this further, open Settings > Privacy > Privacy dashboard > Location > 3 dots > Show system apps. Find a location request by GmsCompat, and there will likely be another app which requested location at the same time. It's likely that app which was trying get location.