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Same issue here, phone xiaomi redmi note 8 pro, mi fit have all app permissions, GPS high accuracy, (tried with only GPS too), battery optimization disabled for Mi fit.
Same here with my MiBand 4 with a Moto Z Play. Erratic behavior of GPS in the app.
It starts out fairly OK, although GPS updates quite slowly. Then after a few hundred meters it starts jumping around. The weird thing is that if I run Google Maps simultaneously, Google Maps will show the correct location with continuous (smooth) updates, while the MiBand registers totally different locations where I never was.
Would be nice if Xiaomi would launch an update that fixes this.
I am facing a similar issue.
I'm using the Mi Band 4 connected to my Xiaomi Redmi Note 7.
Instead of the Mi fit app, i am using the Amazfit app.
When I start my run, the first kilometer the tracking is usually pretty accurate.
But after that it's basically all over the place.
Sometimes it even stops registering and then 5 min later it starts tracking again.
This all results in very inaccurate results for my run.