The app in Kiosk needs access to location services and it is turned off on the device. This is the reason why you are receiving the blocked package error. You can add the blocked package as background app, and you will no longer receive the blocked package error. But this might provide the user with the access to device settings.
The best method is to turn on the location services before enabling the Kiosk mode on devices.
In the case of Samsung Knox, LG GATE and Kyocera business phones, you can enforce the Location Services via restrictions. Follow the below steps:
Navigate to Policies-> Android-> Restrictions-> Allow Location Settings.
Enable the options ‘GPS’ and ‘Force GPS to fetch location’.