Hello Kpolloc,
Thanks for asking the Apple Support Communities about issues with CarPlay. You might need to adjust some settings, or the GPS isn't perfectly exact. If it's only 10 miles off, that might be as close as you get going through CarPlay, or the stereo manufacturer needs to send an update to work with the new iOS.
To check your settings, start here: This article talks about how your location is estimated: About privacy and Location Services in iOS and iPadOS - Apple Support
"Maps, directions, and location-based apps depend on data services. These data services are subject to change and might not be available in all geographic areas, resulting in maps, directions, or location-based information that might be unavailable, inaccurate, or incomplete. Compare the information provided on the device to your surroundings and defer to posted signs to resolve any discrepancies."
This also depends on your settings to use Location Services: Turn Location Services and GPS on or off on your iPhone, iPad, or iPod touch - Apple Support
Other factors may be involved as well, such as third-party software that adjust your date/time/location. This can also be caused by the network you are connected to. The article about the location for two-factor authentication also mentions: Two-factor authentication for Apple ID - Apple Support
"This is an approximate location based on the IP address the device is currently using, rather than the exact location of the device. The location shown might reflect the network you're connected to, and not your physical location."
Next, please check this troubleshooting article here: If you need help with CarPlay - Apple Support
There is also a step mentioning the need to check if the car stereo needs an update to work with the new iPhone model or iOS version, stating:
"Make sure that your CarPlay stereo is using the latest firmware from the car manufacturer. Check your car's manual for more information."
Thanks.