Thank you for the reply, Chris, and for the link to your blog article.
According to the article, my QCC does not work because it violates the OWL DL profile.
"...
the basic problem arises when combining transitive properties such as part-of with cardinality constraints."
While BFO's 'located in at all times' is transitive, 'located in at some time', its parent, is not; neither does 'located in a some time' have a super property that itself is transitive. Since I did not use a QCC in the context of a transitive property and I did not create a complex subproperty (I simply reused 'located in at some time'), could there be another reason for this Pellet error? In the meanwhile, I'll have to explore more closely how a QCC combined with a transitive property violates the DL profile.
By the way, the article also mentions the HermiT reasoner will complain. I ran the HermiT reasoner (v1.4.3.456) within Protege (v5.5.0), and it did not complain.
I appreciate your feedback.