Earlier quoted context omitted.
It looks like they’re using the location API for both (1) screen time inference and (2) screen time and location correlation; and they’re using (2) to justify use of location while ignoring that (1) violates Apple’s TOS. I agree that users ought to be able to use the app without granting access to location data (opting out of #2). But unfortunately, if Apple provides no way of inferring screen time without use of loc…
#1 Does not violate TOS. At least the rep spoken to said it does not. It is permitted to apps to known when the screen is on / screen off, via the built-in notification it provides.
[citation needed]