1. Last time I checked it (a year ago min.) things did not go well if you had both GPS as well as city/adress info in a room. It seems to be either/or.
2. That the replication into offline address books takes 24hours plus is no news. However afaik the room finder does not work offline, does it?
For unknown reason, changing data in this part of the M365 universe still takes often 24 hours or more. I was told once that some of the processing is only done once per day cloud-side, which (if true) is a joke by itself.
So first thing is to be patient and wait 2 days after any room finder related changes.
3. Interestingly enough, I also had to find out, that things work differently in different tenants. I was never able to track it down but I did have two tenants setup exactly the same but behaving differently. I suspect some regional/language issues as my world is mostly running in German, whereas the other tenant was all UK-ish.