If they can remote into the car, and the car sees satellites and is "using" a large number of them for position, and the position on the map doesn't move, that tells you that it's a hardware failure? He said "look, it's just the way GPS works".
In my experience, tech support and the folks at the service center really like to replace hardware. Because that's a thing they can do. Software problems are something they (a) can't understand, and (b) have a really hard time doing something about. For software problems they have a lot of bureaucracy to deal with (I imagine) to get the software engineers involve, prove to them there's a problem, and get the problem prioritized and on their schedule to fix.
I tried at one point to demonstrate a software bug in the climate control. Because I have no direct line to software engineering, I had to work with tech support and the service center. They had my car in the shop for a week replacing different parts of the climate control system that they claimed were broken (all under warranty, but still). And in the end the problem was still there, because it was (very obviously to me) a software problem. And in the end, they shrugged and said "that's how it's supposed to work, everything is fine."
I think it is way, way too much trouble for these folks to report software bugs. And the "bug report' button does not get the job done either. Tesla has no real way to deal with software bug reports from customers. Unless you are a YouTube or Twitter star -- then you can get bugs fixed super quickly.