@Jerry_Quarry_Mentang and @Yohan_Parmanand, thank you very much for taking the time to provide details on this issue. @Heath623 has also provided useful insights at Infinite spinning while getting location with Bluetooth GPS device. Several contributors have done their own tests and reported back on Slack and @jknightco has also run some experiments.
What I believe after some community discussions and this StackOverflow post is that the more modern Google way to get location information always tries to combine location sources (GPS, wifi ssid, cell network, other Android devices, etc). It appears that when phones/tablets are set to "GPS only" the best accuracy reported is 10m. The GPS accuracy may be better than that but because the Google location mechanism can't use other sources it does not report a better accuracy than 10m. I believe that testers and people like me didn't notice this because we were verifying the behavior in denser urban areas with lots of other available sources that made reported accuracy high. @Jerry_Quarry_Mentang, @Yohan_Parmanand, @Heath623 are you in locations where few other sources of location data would be available? This really highlights the importance of the beta program and getting feedback from a wide range of users!
The Collect beta that @yanokwa mentioned above gets location more slowly than the current release but it should be able to report accuracies under 10m. It would be very helpful if you could try it (on a test device) and make sure that the behavior matches your expectations.
If anyone else has any insights on this issue or their own experiences to report, it would be much appreciated.