Yep...but
Yeah -- that's what makes this an interesting bug -- Facebook was ALREADY set to off in the Background App Refresh setting and my location services was ALREADY set to "while using app". Therefore, one would think that with Facebook not running, it should not have been using location services! Anyways, even when Facebook normally uses your location, you don't get a blue banner announcing it!
And, yes you are totally right, I shouldnt fault Facebook for not fixing their app in 2 weeks especially given they may not be able to using 8.3. I also know that it's no issue of mine since this is a dev release meant for me to test my own apps not Facebooks. All that aside, they have still sucked historically at resolving issues in the iOS 6, 7 & 8 beta cycles so it's hard not to jump to conclusions when I see crappy coding on my phone.