@new-user114
During the setup of a Kasa smart device, the Kasa App on Android may require access to the location settings on the Android phone being used to complete the installation. This is required by Android 6.0 or later versions. When a device running Android 6.0 or later initiates a Bluetooth or Wi-Fi scan in the background, the corresponding App must have access to the location settings for greater data protection.
When you're adding a Kasa device through Kasa App installed on your Android phone (Android 6.0 or later), the Kasa App will search for nearby Kasa smart devices via Bluetooth or Wi-Fi scans, permitted access to the device location will be required.
The location permission is used only during the setup process. Once you complete the setup, you can disable the location permission.
There is also an explanation in the APP when it asks for location permission.