Did you already acquire the GPS signal while being outdoors, or started an outdoor activity? If not, do it.
I've read in a number of watchfaces that the location name is no longer working after some change that Garmin has made to the weather API.
I've tried that and it still shows the wrong city
Andy is right, there is indeed a bug in the location name served to Connect IQ apps. You'll have to wait till Garmin fixes it.
Cool thanks for the info