Some weirdness related to the XLS > XML conversion I think may be the cause of this
Looking at the raw XML in post above (which I converted on my laptop using XLSForm Offline) it lacks the relevant parameters for track-changes & GPS within the Audit node.
Whereas this version that I made using XLSform Online includes them.
yaw_audit_online.xml (1.1 KB)
I then tried XLSForm on my work desktop (would need to check it that is same XLSForm Offline version as my laptop; desktop is 1.9.0)
It would convert it if it had the location parameters but throws an error if you try and include track changes:
Input file: /Users/icrummar/Dropbox/Work/ODK/Central Test/yaw_audit.xlsx
ODK XLSForm Offline Errors:
Accepted parameters are 'location-priority, location-min-interval, location-max-age': 'track-changes' is an invalid parameter.
When I use the form converted using XLSForm Online then I get the appropriate message about location tracking & the audit log works correctly.