I am prompted that each time I activate the GPS to use OsmAnd (for example).
The worst is that if you accept it once, this setting is saved and there is no obvious way in the UI to change it back (which was possible in the past I think).
To reset it, go in the Applications manager in the settings, choose Google Play Services and reset all its data.
There is no way it is a bug, someone had to think and put this deceptive behaviour as a feature (and someone had to design its deceptive UI, someone had to do unit testing for this deceptive behaviour, someone had to QA it…).