it does exist, but this is one manifestation of the Google place vs iNaturalist place matching issue i noted above. there are other reports of cases like this, if you search the forum. some cases are more problematic than other cases, and some are more like actual bugs than other cases. but the solution (workaround?) for these cases usually is:
personally, i almost always filter for locations using Filter > More > Places. the only time i might use the Location box (next to the Species box) is if i can’t find the place the other way, and i don’t want to bother adding (or can’t add) a new place to the system.