Sent from my Nexus 4 using Tapatalk
I have found that if I switch off/on location entirely OR switch from WiFi/mobile location to GPS only and then back to WiFi/mobile location then my location cannot be found by Google maps or android device manager (haven't tried any other location based apps to see if they also fail to work).
I have to reboot or clear google play services data to get my WiFi/mobile location to work again.
Note this is on a moto g phone not a nexus 4 but to me it seems like the issue the OP described. Maybe a KitKat bug.
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