I just had the same issue last week when my app with SMS permissions for cross-platform syncing was rejected, but after some back and forth with Google I found

I just had the same issue last week when my app with SMS permissions for cross-platform syncing was rejected, but after some back and forth with Google I found out what they needed to let our app through. When publishing a new release on the Google Play Console, you need to create a video showing how the permissions are granted as well as the functionality that uses the permissions, making it clear that this functionality is a part of the core functionality of the app. After that, they approved it pretty quickly. You have to take into account that the Google reps that approve or reject the apps don't spend much time checking if the app is compliant, so if they don't see this evidence in the video, the app won't be approved.