Do you mean when the device/phone is actually in your home, Life360 temporarily returns a GPS location outside your HA Home zone?
If so, yes, that does seem to happen with any GPS-based device (but luckily, at least in my experience, not very often.) Sometimes the GPS fix is wrong and there’s not a whole lot a service like Life360, or the HA life360 integration, or the composite integration, can do about it. Bad data is bad data, and AFAIK, there’s not any way, or any good, reliable way, to determine the data is bad, so it just has to be believed.
This question does come up from time to time, but that’s not how the composite tracker works. Its design is based on the assumption that newer data is “better” than older data. It does not try to “prioritize” input data (although it does have some mechanisms for trying to ignore data that is known to likely be useless, like home-to-away transitions on network/router-based trackers, and unavailable
& unknown
states.)
But, looks like you got it working. Let me know if you have any other questions.