Bug because someone under 500 rep shouldn't be able to retag a post, though there is the option to remove the privilege as its basically useless and another ui element.

That's no bug.

Under 500 rep you aren't able to retag a post unless someone approves your edit. Here's the difference: With ≥500, you can retag questions as much as you like, without needing peer review. And that's in the meaning of "a privilege". You get to do stuff others can't.

It's the same with Edit questions and answers. It's a privilege because you can freely edit without having to wait for approval.

I agree though that the wording on the privileges page could include a sentence that mentions this discrepancy between being able to suggest edits and actually making them.

Bug because someone under 500 rep shouldn't be able to retag a post, though there is the option to remove the privilege as its basically useless and another ui element.

That's no bug.

Under 500 rep you aren't able to retag a post unless someone approves your edit. Here's the difference: With ≥500, you can retag questions as much as you like, without needing peer review. And that's in the meaning of "a privilege". You get to do stuff others can't.

It's the same with Edit questions and answers. It's a privilege because you can freely edit without having to wait for approval.

I agree though that the wording on the privileges page could include a sentence that mentions this discrepancy between being able to suggest edits and actually making them.