When performing a bulk import, the tool attempts to import Conditional Access policies (folder: ConditionalAccess) before importing Named Locations (folder: NamedLocations).
Because the Named Locations do not yet exist in the tenant at that point, any Conditional Access policy referencing them fails with an "Invalid Location" error.
This indicates a flaw in the import sequence, not necessarily in the policy‑handling logic.
I’m not completely certain this is the root cause, but the behavior strongly suggests it.