A device wants access to my location and my contacts. Why?
Answer first
Setup may need access to nearby Wi-Fi devices. Older Android versions show this as a location request; it does not explain a request for your contacts.
During setup, a smart-device app looks for a nearby device and Wi-Fi network. The permission shown by Android depends on the operating-system version and the operation used by the app.
On Android 13 and later, the normal prompt is for nearby Wi-Fi devices. Older versions can show a location request for the same setup step. Network scanning can still require location on a newer version.
Access to contacts is unrelated to finding a Wi-Fi device. A calling feature might need it, but ordinary device setup does not.
Permissions can be changed later in the phone settings. Remove one if the feature that used it is no longer in use.