GPS coordinates no longer in output files

With 6.2.2 my output files (jpegs) no longer contain any GPS data even though the appropriate options are set correctly. This worked beautifully before!

Here is my workflow:
- Download CR2 files from memory card using Canon utility
- Get rid of unwanted images using Zoombrowser EX
- Add GPS data to XMP sidecar file as I don't want to change my CR2 files. I use Geosetter to do this
- Process CR2 in Capture One to create 2 jpeg versions (one for printing and one for web viewing)

Here are the things I've checked:
- The appropriate settings in the "Process Recipe" "Advanced" tab are made ("Include GPS Coordinates")
- The GPS coordinates ARE visible in Capture One on the CR2 file in the "Metadata" tab under "EXIF-GPS"
- Checked the synch settings for XMP sidecar files
- Redid some old CR2 and XMP sidecar files: same issue.

I've made a support call but the answer was less than satisfactory. The answer is that C1 doesn't copy EXIF data from XMP sidecar files, just the EXIF from the original file as they are sure that is what is correct. No explanation why it did work before. The strange thing is that there is a preference to override this ( "Prefer Sidecar XMP over embedded" ) so why they would disable this functionality is beyond me. To me it sounds like a bug but they're not owning up to it.

The suggestion support made was to put the GPS info into an IPTC field. This is useless as no other software will support this. The only other option I can think of is to create some sort of script to copy the metadata after C1 processing but this is a LOT of work and will seriously impact the time to go through my workflow.

Is anyone else experiencing this? Did anyone else contact support about this and get a more helpful answer?