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The device communicates with your Android phone via Bluetooth to show trouble codes, list problems, and even allow you to reset your check-engine light.
In Android 12, apps that need Bluetooth Scanning won’t need to ask for location permissions. And this is actually a feature that came from the COVID-19 tracing apps that launched last year ...
See, back in Android 6 Marshmallow, Google changed things so that apps needed location permissions to scan for Bluetooth devices. At the time, the rationale was that Bluetooth was going to be used ...