FYI - I have retested this again with macOS Monterey (12.6), XCode Version 14.0 (14A309), Simulator Version 14.0 (986.3), running iOS 16.0 (20A360). There is no change, the location services part of the privacy section of the settings app on iOS running on the simulator is still missing. So there is no change with iOS 16. I updated the bug report I submitted.
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I found the rules here;
https://developer.apple.com/app-store/small-business-program/