Go through the post again, ST has nothing to do with it. It doesn’t “figure” anything out, your phone does that and reports it to ST. So it’s really your phone (or the operating system) which is the issue here, it’s isnt’ able to figure out where you are and if you read the post again you’ll see what AGPS plays an important role in telling the phone “where it is”. The phone just reports it to ST.
I don’t see what’s the corelation between the hub and the phone. They are independent devices and have nothing to do with each other w.r.t to location. The ST app tells the hub “where” it is based on what the phone (operating system) reports to the ST app. So you could put your phone on top of your hub and it wouldn’t know it unless the phone “reports” that to the ST apps who then reports it to the hub.
The phone is a presence sensor device who’s location is determined by the operating system. To answer your question, that’s why AGPS and WiFi and every other technology used by the operating system to determine its location is important for you to understand and diagnose to get your location correct.
See the very next post, the user had replaced the modem/router and the MAC address in the providers database had it registered to a different location hence the phone was “reporting” it in the wrong location. That’s why I’m saying it’s important to understand how location works so you can figure out what’s going on. It really doesn’t have much to do with the ST app per se.