hi
I don't have a solution for the problem you described but I believe I have the very same problem which I described here: https://developer.apple.com/forums/thread/737879
CLLocationManager sends location data to 'didUpdateLocations' when running in the simulator but not on the physical device.
The only difference I noticed is that the error that 'didFailWithError' is a different one than the one you have received. In my app the same error code arrives (Error Domain=kCLErrorDomain Code=1 "(null)") but its description says "Operation could not be completed". I noticed this error also when running the app in the simulator but nevertheless the location data is delivered even though this error was shown at the beginning of location data delivery. On the physical device the error arrives and no location data arrive.
Thomas
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solved!
The problem can be solved by resetting the 'Privacy & Location' settings (Settings / General / Reset / Privacy and Location)
the very same as reported from several users happens with our app on a watchOS 10.5 watch and iOS 17.5 iPhone, having this solved as soon as possible is very important