I am currently running an older version on Windows (0.0.2+2, installed from Github prior to availability via Windows store and kept at that due to the ability to see all received aircraft, a primary function of the computer) and have actually had no success with using location within Windows in any way. I always connect to a Stratux device so it doesn't matter to me, but the computer has a built-in GPS accessible via com port that I have never seen AvareX find. I assume this will be the same with any USB or otherwise connected GPS.
As far as the Stratux connection, I have found it can vary how long AvareX takes to recognize a Stratux is providing data. I have at times had AvareX sit with no data when I know and have verified through the web page that the Stratux is functioning, receiving traffic, and has good GPS lock. In these cases closing and restarting AvareX has usually found the Stratux relatively quickly. One caveat is this is on Windows 10, I have not seen Avarex on Windows 11 yet.
I did run into a new situation a couple days ago, which I think is a Windows issue and not specific to AvareX. I attempted to set up a Windows tablet, also Windows 10, to connect to the Stratux and display AvareX on an external monitor. Although I could connect to the Stratux web page, AvareX would not find it regardless of what I tried. Although I am not sure the exact reason, and did not spend time troubleshooting it, I believe it was something with Windows because it would also not recognize the HDMI connected monitor.