A quick note relevant to the following information: Starship is maintaining position estimates based on all sensor inputs (VOR1-2, DME1-6, VLF, OMEGA, and GNSS) at all times. These estimates, when available, are then integrated into the FMS position estimate, which is what you will see on the screens, and what the aircraft will fly.
I'll start with the easy one: The GPS position remains constant, because GPS position accuracy is very good, worldwide. Since you've deselected GNSS as a position source this good estimate will not be used by the FMS.
Since you've also deselected VLF/OMEGA, the FMS position can only be based on your initialized position (at the CDU initialization screen), and the inertial reference system (dead reckoning). You can update the current position estimate using any of the several position update functions, based on navigation aids, database position fixes, or known longitude and latitude.
From your screenshots, it seems the FMS position estimate went to maximum, because the longitude and latitude you entered were so far away from what the inertial reference system considered feasible. I say this only because I thought it was unlikely that you were actually located at N11°11.1, W11°11.1.
Does all of that make sense? I imagine you've already read through the manual, but I wanted to make sure you've also seen the video on position uncertainty on the Just Flight YouTube channel. The position update options are discussed in the manual, but if you still have questions, you know where to find me!