I have set up ATUM with 2 locations.
1 is a PA warehouse and the other is a Sioux Falls Warehouse.

I also set up two shipping zones, one for the United States named Brandfox (US) where I have a single $4.00 flat rate shipping charge to use for testing and easy identification when testing as a customer.

I have a second zone set up for Sioux Falls with a free shipping option as well as a series of table rates based on weight or price.

After everything is set up, I can see these two warehouses with their inventories as shown below.

This is due to the configuration of each warehouse as shown below.

The inventory must be sold based on geographic proximity of the customer’s shipping address to the warehouse.
My expectation is that when someone with a California address purchases the test product, the order will ship from the Sioux Falls warehouse due to this close geographic proximity.
However, to my horror, the order keeps pulling from the Brandfox Pennsylvania warehouse as shown below.

It doesn’t seem to know the customer’s California address is closer to the Sioux falls warehouse.

How can we fix this as geographic based shipping is of critical importance?
*** UPDATE 10 MIN LATER ***
I have some additional strangeness going on. I eliminated the Brandfox warehouse from the Test Product as you can see below. There is only 1 warehouse this test product lives in and that is Sioux Falls.

However, when someone goes to purchase it, the Brandfox warehouse keeps showing up for the shipping.

I don't have Brandfox Shipping Region or Warehouse Location in any way configured in the Soiux Falls Warehouse Location.
What do I need to do to fix this?
*** UPDATE END ***
My ultimate goal is during checkout, the system will identify which warehouse is closest to the shipping address and will present shipping options associated with that warehouse to the customer.
If the inventory at the closest warehouse is 0, the second closest warehouse should be used.
If there are more than 2 warehouses, if the closest 2 are out of stock, the next closest warehouse should be presented so the customer can choose the desired shipping options associated with that warehouse.