@Pavel yannara Mirochnitchenko , Based on my test on my win10 21H2 device, when I set the same policy as yours and assign it to the user group, I find the location service is forced to on.
To troubleshoot our issue, firstly, I would like to confirm if the policy is applied successfully on our device. Meanwhile, please check if there's any GPO configure location service assigned to this user.
If there's any update, feel free to let us know.
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