Hello CapeGal80 and welcome to Apple Support Communities.
I see you are having an issue with the Workout app on an Apple Watch. You are correct, the fact that there is no option for Apple Watch Workouts in Location Services does point to a deeper issue.
If you are not currently running the most current version of iOS (13.3.1 at the time of this post) then start by updating to see if that brings this setting back
Update your iPhone, iPad, or iPod touch - Apple Support
If you are already running iOS 13.3.1 or if updating does not give you this setting option, you may need to consider reinstalling iOS on your device. While this shouldnât affect any data stored on the iPhone, it would be a good idea to make sure youâve got a backup in place.
How to back up your iPhone, iPad, and iPod touch - Apple Support
Once youâve successfully backed up your device, follow these steps to reinstall iOS, making sure to choose âUpdateâ when prompted.
If you can't update or restore your iPhone, iPad, or iPod touch - Apple Support
Cheers.