I finally found a fix for the location issue on CMF Phone 1 with /e/OS I was facing.
Adding this here so I can re-find the steps if required-
Do this:
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Settings → System → microG → Location
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Tap the 3 dots (top right)
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Choose “Online location service” / “Configure service URL”
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Select Custom (instead of BeaconDB)
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Paste this exact URL: API – Positon
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Save → restart phone → location works immediately.