It's just a coincidence that prepositions serve both of these purposes in English
Not really… these categories fall together in a lot of languages. It doesn’t even require prepositions: a lot of languages have case markers which can be used for both location and verbal arguments.
The specific examples you’ve given are, respectively, called the ‘comitative’ and ‘instrumental’ uses of with. These two categories are particularly prone to falling together, mostly because the boundaries between them aren’t particularly clear: for instance, if you say, I made the coffee with milk, you could say that the coffee is accompanied by the milk (comitative), but you could also say that you’re using the milk (instrumental).
Comments
Not really… these categories fall together in a lot of languages. It doesn’t even require prepositions: a lot of languages have case markers which can be used for both location and verbal arguments.
The specific examples you’ve given are, respectively, called the ‘comitative’ and ‘instrumental’ uses of with. These two categories are particularly prone to falling together, mostly because the boundaries between them aren’t particularly clear: for instance, if you say, I made the coffee with milk, you could say that the coffee is accompanied by the milk (comitative), but you could also say that you’re using the milk (instrumental).