The example 'Sierra Nevada se encuentra en la provincia de Granada.' seems to me to suggest passive 'se' rather than reflexive. Perhaps because I tend to translate it as 'is found' (passive). Is that an accurate translation?
Also, I've got in the habit of using the Latin American ubicar and estar ubicado. Are these considered incorrect in Spain?
the verb encontrarse in this example as "is located" is used as a pronominal verb with the reflexive pronoun with a specific meaning (if you drop the pronoun this sentence wouldn't make sense)
Despite being able to have a translation in English using a passive (Sierra Nevada is located in Granada), I wouldn't consider this a passive. For me the meaning here is simply "is in ..."
Encontrarse is one of those verbs that have a different meaning if used with reflexive pronouns. Here is a lesson talking about encontrar vs encontrarse.
With reference to using "estar ubicado en...", yes, you can also use it in Spain. It is absolutely correct although slightly more formal than "se encuentra en...":
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