Microsoft rewards keeps telling me to update my location

Same here, just started working all of a sudden. Not sure if it was because I reported it to Microsoft Support yesterday or not, but whatever it works now.

Go to the page where you need to update that info, but don't actually change anything. Maybe it'll work after you do that?

hi i'm from Australia to with the same problem I notice the app done a update and the issues started after that. saying update location nothing worked except changing my location to usa then it worked only problem is u wore on the usa store points still
counted towards my goals as I do it on the pc as well and it say's Australia my pc and points carried over so what I do I change my location to usa to do the challenges and then when i'm done change it back to oz hopefully they fix it soon it's annoying swapping
and changing but it works just be careful when looking at prices of games/movies cause at first I was thinking why is this game so cheap when it's a new game that's when I relized I was looking at usa dollars lol. hope this helped anyone.

So I installed the Xbox Insiders app and reported the problem like you said so now I guess we will just have to wait and see what happens.

Have you tried to install the Xbox Insiders app? You may be able to use that to submit a report after installing it so that the development team can get info from your console. Press and hold the Xbox button on controller and then select Report a problem.
Choose Apps and then Microsoft Rewards, fill in the applicable subject and description, then click Submit.

Good luck!