No Always does seem to be normal. Seeing same on my phone.
Only thing I can think of is that "Arriving" is the "problem". In Shortcuts, have similar, "when leaving/arriving", and the Automations will not run unless you are literally arriving or leaving a location.
So, if been at home all day, will not run. Or in case of Reminders, will not alert?
Original sales pitch for location based Reminders back in iOS 5(?) was along the lines of "when passing by your grocery store, the shopping list with location Reminders will remind you to pick up eggs, milk, coffee, etc". So can see why you are seeing what you're seeing.
EDIT: Just looked at adding a location based Reminder and has same feel/look as Shortcut Automations, so feel related. That said, if the Reminder was set before arriving home, should have notified.
EDIT2: BUT... I see that DnD is on, so that is maybe blocking the Notification.