I live in indonesia, this error happened to me for more than 3 months.
It shows my home right, Bandung, but my location is Republic of Indonesia.
I can cope with this if it was the other way around, i mean my home location is Republic of Indonesia and my location is Bandung.
Well Bandung is in Indonesia, not Indonesia is in Bandung.
Wouldn't it be very funky if England is in London right?
Other weather app shows right location, well i dont know who to blame, HTC and Google should be responsible for this

Happy to find this thread, already done everything describe here with no good results, so envy with others who succeed