Just for everybody's info and future reference:
Just had similar problems with a Lenovo T440s running Windows 8.1 Pro 64-bit (with Update 1) which contains an Ericsson N5321gw chip (WAN + GPS). Geolocation was not working at all and the Event Viewer had "internal errors" for the Ericsson chip.
Once I eventually sorted these latter out by installing more recent drivers (Ericsson redistributed by Lenovo, v. 8.1.3), I ran into this thread's problem with "Windows Location Provider" displaying a yellow warning in Device Manager and geolocation still not working.
For my machine, it was enough to go to Device Manager, pick the problematic Windows Location Provider item, select Uninstall as suggested in this thread, and right away do a "Scan for Hardware Changes" in Device Manager, which reinstalled the WLP driver on the fly and this time without yellow badges. That actually worked fine without even rebooting.
(Why Windows is not able to fix this problem without user intervention, on the other hand, is beyond me).