Apple CarPlay GPS wrong location issue

Hello,

I bought a car with CarPlay functionality (RAV4 limited 2023). I am using it with an iPhone 13 pro under IOS16.4.1a (latest OS to date). CarPlay works except for navigation apps. When I use either Waze, Google maps or Apple maps, the location gets switched between the actual current location and somewhere 20-30 meters from the car. Therefore the GPS guidance doesn't work since the actual location is incorrect.

GPS apps on the iPhone works fine when not connected with CarPlay in this car. GPS navigation system from the car works fine when the phone is not connected.

I tried to start GPS apps first before connecting it to the car. It usually works for a few minutes (1-5 minutes) then the location is again off by 20-30 meters. I tried to start the GPS apps after I connect the phone to the car and I get the same result.

If I disconnect the phone, the car and iPhone GPS give me correct location. If I reconnect them, both give me the wrong location. When the car is not moving, the wrong location remains at the same spot even after I

disconnect/reconnect the phone. So it's not giving a random location. It's off by 20-30 meters.

Has anyone ever seen anything similar?