Is WiFi turned on (if not connected to a network) when you experience this problem? or have you turned WiFi off entirely? Are you indoors or outdoors where GPS might be able to determine a location? Are you in a building where some kind of cellular booster is installed (some office buildings have these to provide indoor coverage where the towers can't provide good service).
Who is your cellular provider?
If the device is unable to determine a location based on nearby WiFi networks, cell tower triangulation, or GPS, the location will be based on the IP address of the egress point from whatever network you're on to the Internet which may be many miles away from your actual location.
If you're using iCloud private relay, make sure you have checked "Maintain general location in the IP address location settings.