Location Indicator Whitelist app
Location Indicator Whitelist is an XPosed / LSPosed module that prevents applications from spamming the annoying location notification dot on Android 12 + LineageOS.
Some apps do access the location in background for legitimate reasons, and the user may not want to be interrupted because of that. Some location providers packages aren't whitelisted by ROMs.
The "Status bar location indicator" switch in developer options has a lot of drawbacks: it disables all notifications when the user might actually find the notification dot useful, doesn't survive a reboot, meaning that you consistently have to switch it off – and it is buggy: if you disable it at the wrong moment, you may get the notification dot stuck on your screen until you reboot. On LOS20, it seems that it even doesn't prevent the location notification dot from showing at all.
So this module allows you to whitelist trusted apps.