Adding the Location Services permission ("While Using" to be exact) to our app didn't help. The recording doesn't work.
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I confirm @Franklan010 's observation. After turning location services on in Reality Composer, the AR session recordings stopped working.
I wonder about the origin of this problem. I believe it could be about the difference in permissions granted – assuming Reality Composer has the location services permission, it collects that data, however, as our app doesn't have those permissions (the user hasn't granted them) this data cannot be used and causes an exception. Just a thesis, need to check.
Thanks for the heads up @MarnixArnold 👍