Hello there,

Thanks for raising this to us.

As per this documentation (Local campaign), when setting the 
location_source_type, you can either choose between GOOGLE_MY_BUSINESS or 
AFFILIATE.

When using the GOOGLE_MY_BUSINESS, locations that are setup on your GMB account 
are automatically linked. However, if you would want to create those locations 
on your GMB account, then you check on this guide or refer to this sample 
(Create a new location extensions feed linked to your GMB account)
When using the AFFILIATE, you can check on this guide (creating Affiliate 
Location extensions) instead.

Hope this helps.

Regards,

Mark Kevin Albios
Google Ads API Team
ref:_00D1U1174p._5004Q2DuHqg:ref

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