It would be great to have some way to filter the list of available printers that are presented to the user. This way users at one site couldn't accidentally add and print jobs to another site. Our ...
We are looking into this as part Conditional Access.
Meanwhile, this can be implemented using AAD security groups. You create a security group per location, include that location’s users in the security group, and assigned access to the printers in that location to that security group only. If this doesn’t address your scenario, please share more details about why it doesn’t.