If I'm reading it right, the screenshot in #4 tells you that there is a host in test_loc_1 that is registered to that capsule which prevents you from removing the location from the capsule. If that is the case, then finding the host(s) and moving it to a different location should allow you to remove the location from the capsule.

I appear to have hit this bug in standing up a new test Capsule 6.11.5.4 server.  The instructions in:

  _Installing Capsule Server_
  Chapter 2.7, "Assigning the Correct Organization and Location to Capsule Server in the Satellite web UI"
  https://access.redhat.com/documentation/en-us/red_hat_satellite/6.11/html/installing_capsule_server/installing-capsule-server#assigning-organization-location-capsule-server_capsule

...did not work; I got a "Cannot update Location to {LOCATION_2} because of mismatch in settings" error.  It did succeed if I selected the "Fix Location on Mismatch" radio button.)

But like this bug states, when I browse to 

  Infrastructure menu --->
    Capsules ---> 
      click the Edit button for the capsule ---> 
        Locations tab

...I see that both locations are listed but greyed out.  (Hovering the mouse over either of them displays "This is used by a host" -- even though this is a new capsule and thus has no hosts!)

If I switch my web UI location view to LOCATION_2 and again browse to the new capsule's Locations tab, things look OK.  (Only LOCATION_2 is among the selected items.)  But if the web UI location view is set to "Any Location", both locations are among the selected items for this capsule.

Just posting some of my notes around this. If you go to Infrastructure > Capsules (ie the index page), the location list in the "locations" column should be always correct.

1) If a location is shown as greyed out in the location selector when you try to edit the capsule (ie the edit page), but at the same time it is not in the list of locations on the index page, then that's just a bug. The capsule is not really assigned to that location and you can't un-assign something that's not assigned in the first place.

2) If a location is shown as greyed out in the location selector in the edit page and it is in the list of locations on the index page and your current location is "Any location", you can try changing the current location to a location different than the one you're trying to remove. In some cases, this will allow you to remove the location.

3) Otherwise (ie if a location is shown as greyed out in the location selector in the edit page and it is in the list of locations on the index page and your current location is NOT "Any location") the behaviour is probably correct as the capsule is actually used by a host in that location.

While part 1) is ugly, it should be just a cosmetic issue without any real impact on anything. What I described in part 2) could be considered a workaround in that one specific case.

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