I had the same issue, my employer is in Kitchener and I landed in Calgary on my way to Edmonton which is where I live in Canada. At the POE, the officer gave me Work Permit with Location in Kitchener and with the condition 'NOT AUTHORIZED TO WORK NI ANY LOCATION OTHER THAN STATED'.
So I showed her my LMIA which specified that I could 'Work Remotely in Alberta' and asked if she could change the condition on the permit. She said that she could not change it wasn't within her power and the permit came like that to her. Then she mentioned that I am legally allowed to work remotely from anywhere but that I cannot work in any official Company's office building except the one in Kitchener.
The exact same thing applied to the 3 other colleagues that relocated with this company. None of them live in the city on their Work Permit.
That is not correct. CBSA agents are also not immigration agents and often give out incorrect advise. If you want to work remotely you must contact IRCC and ask if you can work remotely and change the condition on your WP. If anyone on a WP could work remotely then you could work from another country not just another city in Canada. To get a WP you have to show why you need the employee to be in Canada. Anyone working remotely with another location specified on their WP is taking a huge risk.