Please check now.
Unfortunately when you installed V2 the default content for the location page did not contain the GD Listings element with the location filter enabled.
This has been fixed in recent versions and is available in the default content on the pages setting at GD – Settings – Pages
Here is the new default content:
[gd_notifications]
[gd_categories]
[gd_map map_type='directory' width=100% height=300 search_filter=1 cat_filter=1 post_type_filter=1]
[gd_search]
[gd_listings post_limit=10 add_location_filter='1']
More about the location page
https://wpgeodirectory.com/docs-v2/templates/location/
I have updated the page with the following settings:
<!-- wp:html -->
[gd_categories]
[gd_map map_type='directory' width=100% height=300 search_filter=1 cat_filter=1]
[gd_search]
<!-- /wp:html -->
<!-- wp:geodirectory/geodir-widget-listings {"show_advanced":true,"title":"Updated GD Listings with Location Filter Enabled"} -->
<div class="wp-block-geodirectory-geodir-widget-listings">[gd_listings title='Updated GD Listings with Location Filter Enabled' post_type='gd_place' category='' related_to='' tags='' post_author='' sort_by='' title_tag='h3' layout='h3' post_limit='5' post_ids='' add_location_filter='true' show_featured_only='false' show_special_only='false' with_pics_only='false' with_videos_only='false' show_favorites_only='false' favorites_by_user='' use_viewing_post_type='false' hide_if_empty='false' view_all_link='true' with_pagination='false' top_pagination='false' bottom_pagination='true' pagination_info='' country='' region='' city='' neighbourhood='' ]</div>
<!-- /wp:geodirectory/geodir-widget-listings -->