I'm confused, all this poser talk of privacy on nostr and now it is somehow good for me to run around with Location Services turned on and GPS running so I can use Bitchat.

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Well, just the app needs it. Gateways built in our phones which makes GrapheneOS more desirable.

Not so with Bitchat, needs full phone Location Services and yes I am on GOS.

Correct, the app needs those "full" permissions but not your whole phone. Just the app to access without restrictions that radio.

In earlier version this was the case as you stated.

In later version, phone Location Services needs to be enabled (not just app location permission) before Bitchat would let you go past first app screen...unless they changed it again.

This is with location permission for Bitchat app given.