Location sharing service not operational on new iPhone. How to fix?

I just got a new iphone 15 pro for my child. However Location sharing services are not working properly with no logic I can understand.

The whole My location section is missing. I made screenshot from my iPhone to show how it should look like. The area in red rectangle is completely empty on the new iPhone 15 pro. I cannot share location in iMessage as well, however it works fine in Maps. Find my phone works fine from the iCloud Web portal.

1. I have created a new Apple ID, resetting the phone completely - did not help
2. I have checked Location services and Find my are ON everywhere. System services are all ON.
3. Checked screentime -> Content & Privacy Restrictions are Off
4. Did hard reboot and reset Network settings as well as Location settings
5. Signed out from Apple Id, rebooted the phone and Signed in again.
6. My Wi-Fi is fine as we have 3 other iPhones working fine on the same network.
7. Cell network connectivity is fine as well.

Nothing helps. Ran out of ideas for now. Can anyone advise why the whole Find My section might be missing ?