I would guess the intention is to have developers/users use WifiRttManager instead for indoor location atleast [1].
Or rely on usual Google Play location services, which is an option in some use cases, but definitely not all. It's optimised for the average use case. No use case is the average use case.
Unfortunately with the way WifiRttManager calculates location it requires the wifi accesspoints to have 802.11mc. However you don't need to connect to these points.
Virtually 0 routers today have this standard. [2] [3] [4]
With 3 access points you can get location close to 1-2m accuracy.
Who knows if they'll place restrictions on this functionality as well though.
I'm not happy that this functionality is being taken away from users and developers - all it needs is a permission.
So it appears there will be a dark age for indoor location over the next few years until 802.11mc is popular.
Perhaps a workaround is to have devices you are connected to and ping them.
[1] https://developer.android.com/reference/android/net/wifi/rtt/WifiRttManager
[2] https://github.com/Plinzen/android-rttmanager-sample
Additional reading
[3] https://en.wikipedia.org/wiki/IEEE_802.11mc
[4] https://fit-iot.com/web/wifi-indoor-positioning/