From the 20250313 changelog:
Sandboxed Google Play compatibility layer: overhaul our default enabled reimplementation of the Google Play location service (location request rerouting) to provide much better compatibility for apps depending on network-based location by always telling apps that the Google Improve Location Accuracy toggle is enabled and providing fallback to GNSS for low power location requests when the OS network location service is disabled as it is by default (unlike Google Play services, which has no fallback, but apps assume users enable the feature)
This reads very much like it could solve the issue.