I am now wondering if this is as a result of logging in on an old device at some point. I am going to remove all devices from my settings (some entries went back to 2017) and see if that makes any difference.
Reported on line to Spotify. They reset my connections and got me to reinstall app. I did use an old tablet for spotify years ago so maybe that was "ghosting" in the background. Will see if it comes back but all good for now.
For those of you still having this problem I have found a possible solution. Going into the Apps manager and enabling the apps "phone" and "storage" permissions (these may not be named the same on your device) manually seems to have at least disabled the message for me. Tried killing the app through app manager as well as restarting the phone and there is no red banner when starting it up again.