"what is your position?" is better English
Yes, in English, the position is the where, just as we would ask what, not where, your location is.
But this could be confused with your position in a company or job.
They use this phrase often where I am in Indonesia to ask for someones location. The taxi drivers use it frequently.
So perhaps "where is your current location?"
That's fine, it's the English translation they're disputing. In English, it's more natural to ask 'what' your position is even for location.
"Where are you located?" would be better
"where are you located" was incorrect - seems a bit ungenerous