"Location" lock on Android when I wake up

"This failure"? Could you explain what is the failure? Garmin connect requiring location? 

How would it update the weather, sunrise/sunset data without location? As far as I know those are done in Garmin Connect, not in the watch itself, so the Connect looks up the location. Which is usually indoors much better than the watch itself as the mobile can use assisted ways for the location.

I too was wondering why the OP considered this a failure and wanted to report it as a bug?  Not only does the location permission update weather and sunrise/sunset info as you stated, it also syncs time when changing time zones, it updates IQ apps and depending on the watch model, it uses DEM to calibrate elevation while sleeping if the option is being used.  Maybe the OP doesn't realize this and thinks it's being intrusive to track your location like spyware?

Maybe the OP is wondering why Connect constantly holds a location lock.

The points you mention do require a lock, but those are one-shots.

Don't know how familiar you are with Android, but the status bar shows active location locks with a marker. I would also be concerned if I have an app that's constantly holds location locks.

Ok. Noticed that I had the location status, force stopped Garmin Connect, it went away.

So yes, it seems to hold it sometimes.

Can't say why, I as don't see the reason for having it longer than just looking the location up now and then. Maybe liveshare if uses watches gps, but that should only happen when it's activated.

But OP's "this feature" didn't much indicate what he thought was the problem. So apparently the problem is why GC is holding location lock, not just asking for it when needed and for that I don't any any good answer.

Maybe bug, maybe stupid coding, maybe something else... Also most probably not related to 945.

For the altimeter calibration, what do you have set for "Auto Cal", "Not During Activity".  If on, turn it off and see if this still occurs.

I think that uses the phones location over night to calibrate the altimeter.

So some more context to this:

I upgraded from a Garmin Vivosport and my wife upgraded from a Garmin 235. We both upgraded to 945's and this started happening. We both have Google pixel 3's.

If I don't revoke the permission for location the indicator in the top of my screen will show an application is using location and my battery drains much faster.

So there is definitely a problem, it's not just a calibration running all night for altimeter.

The icon in my screenshot is the little point with a dot.