Update: I decided to reproduce the "None" setting on the Android. Turns out that selection is actually ignored there too. I did, however, have success with the "Auto-Detect" option.
Now to make that work for the iPad. This may have all started when I was letting iFly drive X-plane 11.
I have a new iPad Mini and wanted to test it by letting the iPad GPS drive the app. I do this successfully with an Android tablet by selecting Menu → About → Connected Devices → None. On the iPad I can select any other Connected Device option and it will switch to that, but if I choose None, it remains on the previously selected Device. Would like someone can confirm that "None" is the correct selection to get position from the iPad's internal GPS.