Located Device for Windows laptops? Does it work for you?

We are looking into the Locate Device feature for our Windows laptops. Based on the documentation, I am not sure this will be of much use. Our laptops don't have GPS or cellular antennas so the only location data they have is WiFi network. I am unclear how this is useful as it probably can only ger your public IP.

That being said, I did test locate a laptop on my desk with my phone hotspot as well as the external cable internet we have installed and both showed pretty much the same location which was across the street from my office. How does it know that? My guess is this:

1. When I connect to the external cable modem/router, it can somehow tell that there are other devices connected to that router that DO have GPS/cell and it can estimate the location based on those other devices.

2. When I connect to my phone's hotspot it can use my phone's location information.

According to Microsoft: If location services is turned on, your device sends location information along with nearby wireless access points, routers, cellular towers, and IP address to Microsoft after removing any data identifying the person or device from which it was collected.