I have already mentioned this issue on Google Plus support but thought I should repeat here with the work around I have found. I have tried this on both a Z1 and a Z3 so know that this is not some wacky error on a particular phone.
The problem seems to stem from the brand new Google Photos upgrade. The error only started on each phone after upgrading to the new style Photos either the downgraded, simpler editor. On both phones turning the WiFi enhancedment to the GPS allowed the Sony app to work correctly.
But the price of this workaround is that the Google Photos app cannot save edits.
So, in order to use my extensive Google cloud based photo archive, I am being forced to disable The Sony Album app completely. This has, as the warnings point out, consequences. In particular, the tiny picture on the bottom right of the camera view, no longer opens the previous shot(a function of Album)
Sony has a powerful camera in the Xperia series. Some of the add-ons are toys for the kiddies and social networking freaks but much is truly useful enhancement(eg the surprising easy and useful 'manual', the informative 'Info-eye' and the nicely thought through 'Sweep' that outdoes any available stitcher app)
Like it or not, Sony must ensure that Xperia always works as a supplement rater than a replacement for Android. I have been committed to Android since the first Nexus and Sony Xperia has been my hardware of choice for my last three phones and led me to choosing the Alpha 6000 as my heavy photographic artillery.
Please use your influence with the Google people to solve this serious breakdown in software coordination.