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Location end points are dictated by the ISP/mobile network providers.
Logging in from my mobile will show an endpoint over 250 miles away from a cell tower in an empty field states away.
Using my home wi-fi, everything is perfectly normal.
And that's what you're seeing in your SteamGuard logs.
Apple put the pin in the map exactly outside my front door which is both reassuring and spooky
Are you sure it's a real playtest and not a phishing link? Because playtest invites aren't sent through chat messages.
Wait till what's fixed? Steam Guard locations are not "broken" they are based on your ISP. Mine is always several hundred miles away because that's where my ISP operates out of.
Also, as cSg|mc-Hotsauce asks. Check that the game the invite is for actually has a playtest. You would have needed to apply for it directly from the store page yourself in most cases. If you're getting a random invite through chat or discord, etc., 99% chance it's a scam.