All Find My.. can do is report the last place the device was seen on the network (e.g. it was powered on, connected to a network, and checked in with Apple).
If it's reporting the last place you used it, but not where you lost it, that means one of a couple of things:
1) It's still where you lost it, but no way of knowing where that is until it's started up again.
2) It hasn't been booted/turned on since you lost it, although someone might have moved it to a different location and just not turned it on
3) Someone managed to wipe the system before it had a chance to connect to the network and report its location.
Chances of 3) are low (MacOS has several security features to prevent arbitrary wiping of a system), but not zero.
Either way, the fundamental limit of Find My is that the system needs to boot/wake up at some point and check-in. Until this happens there's no way to tell where it is.