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Opened the new official redesigned Apple store app for the first time and got this message.
Is Bluetooth often used for location purposes? I usually get the wifi message
Since Bluetooth is always enabled on my iPhone for watch purposes, I disabled Bluetooth on my iPad Pro and then opened the Apple Store app. I did not get the Bluetooth-related message you received and it was aware of the closest Apple Store in my area. Then again, I was connected via Wi-Fi at the time. Anyway, to answer your question, I'm unaware of Bluetooth being used for location purposes.