The problem in this case is the Google Play Store, not Android.
Google is blocking Nextcloud from updating their app on the Play Store unless they remove this vital permission.
But nothing is stopping Nextcloud from making their app available on third party app stores with the approriate permissions.
If you download the app from F-Droid instead, it should work correctly.
That is not to say that what Google is doing isn’t monopolistic. I’m just pointing out that you can bypass this restriction by not using their app store.
The problem in this case is the Google Play Store, not Android.
Google is blocking Nextcloud from updating their app on the Play Store unless they remove this vital permission. But nothing is stopping Nextcloud from making their app available on third party app stores with the approriate permissions.
If you download the app from F-Droid instead, it should work correctly.
That is not to say that what Google is doing isn’t monopolistic. I’m just pointing out that you can bypass this restriction by not using their app store.