No mention of Bluetooth though, and my manifests asks for BLUETOOTH permission, but that should not exclude the device
Yes, it should.
Quoting the documentation:
Some feature constants listed in the tables above were made available to applications after the corresponding API; for example, the android.hardware.bluetooth feature was added in Android 2.2 (API level 8), but the bluetooth API that it refers to was added in Android 2.0 (API level 5). Because of this, some apps were able to use the API before they had the ability to declare that they require the API via the system.
To prevent those apps from being made available unintentionally, Google Play assumes that certain hardware-related permissions indicate that the underlying hardware features are required by default. For instance, applications that use Bluetooth must request the BLUETOOTH permission in a element — for legacy apps, Google Play assumes that the permission declaration means that the underlying android.hardware.bluetooth feature is required by the application and sets up filtering based on that feature.
There is a special section in the documentation regarding setting up the manifest properly for Bluetooth permissions that addresses your scenario.