Some fields don't show

Are you still experiencing this? I am not able to confirm these errors. Can you provide more information?

I see the same and I found the problem is. You **only see this problem when you have fields set to "Required".

The problem is in "location.module", line 1466:

  if (!$required) {
    // Relax non-required settings.
    foreach ($settings['form']['fields'] as $k => $v) {
      if (isset($settings['form']['fields'][$k]['collect'])) {
        // Block 2 (Required).
        $settings['form']['fields'][$k]['collect'] = $settings['form']['fields'][$k]['collect'] & ~2;
      }
    }
  }

$required is false, so this is executed, after this, all the fields with 'collect' key value == 'Required' (value 2) become '0'. So the end result is for 'Required' fields become disabled.

This is the call stack:

sites/drupal_devel/modules/location/location.module.location_normalize_settings : lineno 1469
sites/drupal_devel/modules/location/location.module._location_expand_location : lineno 233
includes/form.inc._form_builder_handle_input_element : lineno 1047
includes/form.inc.form_builder : lineno 873
includes/form.inc.form_builder : lineno 914
includes/form.inc.form_builder : lineno 914
includes/form.inc.drupal_process_form : lineno 394
includes/form.inc.drupal_get_form : lineno 119
modules/node/node.pages.inc.node_add : lineno 58
includes/menu.inc.call_user_func_array : lineno 0
includes/menu.inc.menu_execute_active_handler : lineno 348
index.php.{main} : lineno 18

the $required value was originally set to FALSE in form.inc line 1335:

function _element_info($type, $refresh = NULL) {
  static $cache;

  $basic_defaults = array(
    '#description' => NULL,
    '#attributes' => array(),
    '#required' => FALSE,
    '#tree' => FALSE,
    '#parents' => array()
  );

at the end of this function, $cache['form']['#required'] == FALSE.

Again, to see this problem, set some of the location fields to "Required".

Since you said this:

>Also when adding the field location to my content type I can't select any options under -Collection settings- Nothing shows up there.

something else is wrong with yours.

The problem I see is different and I now understand the logic: if the global 'Required' is not set, then any 'Required' fields are set to "Do not collect". I think this is a problem. User don't expect "Required" field to be disabled because the global "Required" was not checked. I think it should be the reverse: if any field is set to "Required", the global Required flag should automatically set to "Required". The form validation logic should check for this and warn the user: "You have some field set the required, so the global required must be set."

Attached is what the config screen looks like for me. If you don't see anything in the "Collection settings", something is wrong.

I forgot the attachment. Here it is.