Spatial is designed to work with Augmented Reality headsets (as well as VR), you can see the world around you - so if you are in the same space we turn off audio and avatars. Why? Because you should be able to see and hear them! They exist to make any face to face experiences with Spatial, in for example a traditional conference room, work.
How location groups work: We determine your location based upon your IP address.
Everyone is always in a location group, if you are determined far away from the others you are in one on your own. Sometimes we incorrectly determine that two or more people are in the same group, then you simply need to tell Spatial you are remote.
If this is happening when you don't want it to simply open the in Spatial Menu go to SETTINGS, click LOCATION, and click JOIN NEW GROUP. This should solve your audio or avatar issues.
See where to go below: