Unfortunately, removable disks also fail, which is a nightmare for servers with external disks. I never thought Apple would break macOS so badly that I'd miss Linux, but this does. The launchd plist desperately needs to allow you to control on a per-daemon basis what a daemon's sandbox includes. The current behavior is just plain evil. I'm having to give full disk access to httpd, php, perl, named, etc. (which is entirely the wrong way to do security), because there's nothing fine-grained.
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I'm pretty sure I filed a bug a couple of years ago.
Thanks, Quinn. I just added mine to the pile (FB11484780: iOS 15.x Simulators are all missing Location Services under Privacy).
This is a blocker for our efforts to move certain manual tests (on real devices) to automated testing (with simulators); running them only on iOS 14 and below largely defeats the purpose of automating them. Please encourage DevTools Engineering to fix this regression sooner rather than later. :-)