I independently verified this problem.
I have tried also tried setting LPE_LAT and LPE_LON as the starting point.
From the PX4 console:
[commander_tests] Failsafe enabled: no local position
[navigator] Global position failure: fixed bank loiter
[lib__ecl] EKF bad yaw corrected using GPS course
[lib__ecl] EKF GPS fusion timeout - reset to GPS