This is used to download the data for AGPS (so the GPS will get a faster fix) - not to be confused with all the UnifiedNlp and the like - network location services.
It is in fact kind of scary and ominous, even if there is SOME information on internet about it not many are doing anything about it. This is leaking A LOT of data to Qualcomm by design: https://www.qualcomm.com/site/privacy/services :
XTRA uploads the following data types: a randomly generated unique ID, the chipset name and serial number, XTRA software version, the mobile country code and network code (allowing identification of country and wireless operator), the type of operating system and version, device make and model, the time since the last boot of the application processor and modem, and a list of our software on the device
The data they don’t mention is also your IP (which I’m sure they log) and what’s more is leaking this data to anybody listening as it’s plain http (for WiFi the access point can identify you even if you use randomized MACs, anybody who’s listening from other WiFi clients, etc).
There are also attacks possible, at least denial of service by serving you other files (possible without https).
It is also worth noting that a Android VPN/firewall might not protect you as this likes to call the mothership at each boot. Also some said it might be doing the same over the 3G/4G data network without help from the OS, therefore bypassing completely any firewall we can throw on it (and making it actually very complicated to sniff to even prove it’s transferring data that way).