I believe that the location types and location profiles' have meanings and not just random string of words.
For example if your Location Type during Sales Order picking is ABCXYZ, your location directive will fail as D365 suggests the final S.O picking location to be either a Bay door or packing. Also, if you have unchecked the "stop work if location directive fails" for Sales orders in the WHS parameters, then work will be created with a blank location.
I have received similar error during Purch. Order receiving. When my Location Type or Loc. Profile is receiving, the work is created with a valid location but if I change the location type or loc profile to anything else, work is created with blank location (as I have unchecked the "stop work if location directive fails" box for Purch. Orders)
Is there any way to overcome this? I want to have custom names for location types, with D365 creating work with locations using that location type.