The guy on this page
https://milaq.net/android-degoogled/
(under chapter “Wifi/cell location”) put together an installation package for location services without microg. I have been using this on “normal” lineageos for a while and while it may not be perfect it’s certainly better than using GPS only.
Still it would need signature spoofing which isn’t currently possible on normal LineageOS AFAIK since haystack and tingle won’t work on newer versions anymore. So if one doesn’t need any GMS-dependent apps and doesn’t want to wait too long for monthly updates on Lineage for microg then milaq’s package looks certainly like a decent option, at least for me.