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I find that this usually works for me.
If it were because of the colony, you'd get a "CANNOT BUILD WITHIN SETTLEMENT LIMITS" instead of "Invalid Position".
Thanks a lot. This approach works.
You can build within settlement limits, you just set the base compy right at the edge of allowable territory, picking a side to move in from. Even without a base you can place a save beacon at the door of your office, never a bad idea, or always have been able to in the past. I admit I haven't tested since this big patch though I need a new settlement on my main as the once lovely world is just toxic mess now. Ahh well.
No, you can terraform, but you need to be smart about it.
I dig down to place a foundation & restore around it to have a solid base. I tunnel or trench for power/supply lines & restore after I've made a few access points to patch into the grid.
You can absolutely terraform around a base, but trying to beat the landscape into submission just isn't a wise move. Nor one for longevity.