Yes it's fairly common !. It's a weird one that it gets your Google Maps one as well... which is common and iOS. The sop that dealers use "use your phone"

.... doesn't work. That was the dealers get out of jail card on the built in systems.
I've answered a few posts over the last 18 months on this one. I've seen it in the Middle East where Syria is jamming satnav so if you are close to the border you loose navigation and have to turn back then it reconnects. But not in a non potential war zone.
My understanding is your mobile phone is taking the satnav signal off the cars satnav aeriel so must be doing, that's obvious. There is a box that leaps the signal from the cars aerial into the phone and that's may be messing the signal up. The cars built in system also gets corrupted as well from what I've been told so built in and phone based ones all stop working correctly.
There are threads about if that makes you feel comfortable:
I have a late 2020 T-Roc 1.5 with MIB3. Apple CarPlay navigation is pretty much unusable due to unreliable location information shown in whatever mapping app I choose. I have tried Apple Maps, Google Maps, Here Maps and Waze. All exhibit the same
problem where the gps location is off by what...
www.trocforums.co.uk
There is some hocus pocus stuff in there about sat nav using the mobile phone towers it doesn't. But acknowledgement it affects the Troc, certainly its been reported across the Vag group with mib3.
May be this one from the board... there are others:
has anyone had major issues with the Sat Nav and it’s crazy jumping position and then pulling google maps with it I use google maps on CarPlay for navigation and on several occasions the car has suddenly completely changed it’s location in the country by several 10s of miles (particularly...
www.seatcupra.net
Or this one:
Hi I received my car two weeks ago, it has 380 miles on the clock, and 220 miles of them are delivery mileage, i have not been able to drive , because i broke my leg three days after delivery, so my wife has been driving, She drove me to the shops last night and the infotainment system went...
www.seatcupra.net
Reckon you probably have a built in sat nav jammer in the car thanks to VAG

. When you go off track that's when the locked satellites drop down in number below 10, 3 or so (10 is good). There is a magic number for 3D accuracy, about 4. Jammers screw up the number of locked satellites so you loose the accuracy or no lock. Sometime with mobile phones you need to reboot, my HTC early one I use for hiking does this at times. The algorithm stops working in the chip set. The location goes all over the place.
Video tells you about sat nav by that well known presenter.
It has brought military grade satellite positioning to the comfort of your car. But how does it work? James May steers us through the science behind sat-nav.
www.bbc.com
Additional reading:
wiki.openstreetmap.org
Armed with this information you can do some tests yourself. There are apps about. Since you have the issue on the phone in the car you can do your own tests using your smartphone. The Android app GPS Test shows some assorted information:
Top right show's its locked onto 15, can see 31 (indoors). Now I bet if you plugged this into your car the locked on satellites would fall when you have the
problem.
These apps also provide the assessed accuracy on the locked satellites, +/- 9 metres on this example and the constellation it's using.:
Apple
store apps for similar:
Discover the Top 10 Apps like GPS Diagnostic: Satellite Test in 2021 for iPhone & iPad.
appfelstrudel.com
I'd experiment, standing outside the vehicle with the unit switched off (may be the 20 minute power down of the car). In the car, not plugged in. Then again switched on, not plugged in, plugged in etc. To see how the lock and accuracy changes. You can also get these GPS Test apps to put you on the map so with any luck it will show you not where you are

.
The cars system could be messing up your A-GNSS data
en.m.wikipedia.org
Assisted GNSS data speeds up locking on but corrupted data leads to problems:
If GPS is not working in your Android phone, then it is very easy to fix. All you need is internet connection and the GPS Status & Toolbox app. This app refreshes the A-GPS data on your phone to make the GPS work flawlessly.
www.trishtech.com
This is when I have to reboot my HTC if it fails to lock on as the link talks about, plus I download the helper data that is good for 6 days or so. Corrupted over the air helper data would give you a
problem. This should all be automatic but does indicate that failures in the software do corrupt your GPS.
I'd run a few tests with GPS Test software on your smartphone to isolate which component part of the connection is doing it as I outlined above then tackle your dealer about it. Some people say it's WiFi connection to the phone rather than USB wired. Outside the car plus levels of testing when you have the issue using one of the GPS test apps will get down to the bottom of how it manifests itself, not the solution mind you. You can also slap in a reboot of the mib3, long hold towards the end of your investigations. Failing that check after 20 minutes when most of the cars electronics go to sleep. That's going to tell you what the interim fix is. Suspect its deliverying up twisted GPS data to your smartphone or it could be interference or a connection left off to the smartphone connection box that jumps the signal into your smartphone.
Wonder whether
@East Yorkshire Retrofits come access this issue and solutions. Yours is the very latest mib3 Arona firmware as I recall.
Like the SOS click these units also have the ability to put you in a differeng place to where you are. Safety in numbers and all that. Report it to the dealer.