Howdy, Mark
From the examples I’ve seen in Wolfram’s post and Documentation, I think your use of “location” as a string was a problem. Try just #location...
Select[test, (#location == "familyroom" &)]
Block[{test, select},
test = Tabular[{<|"location" -> "study",
"temperaturesensor" -> "SHTC3"|>, <|"location" -> "basement",
"temperaturesensor" -> "BME280"|>, <|"location" -> "familyroom",
"temperaturesensor" -> "BME280"|>, <|"location" -> "Study",
"temperaturesensor" -> Missing["NotAvailable"]|>, <|"location" ->
"DiningRoom",
"temperaturesensor" -> "MCP9808"|>, <|"location" -> "upstairs",
"temperaturesensor" -> "MCP9808"|>, <|"location" -> "Thermostat",
"temperaturesensor" -> "DPS310"|>, <|"location" -> "FamilyTV",
"temperaturesensor" -> "TMP117"|>, <|"location" ->
"Indeterminate",
"temperaturesensor" -> "BME680"|>, <|"location" -> "LaniStudy",
"temperaturesensor" -> "BME680"|>, <|"location" -> "Basement",
"temperaturesensor" -> "BME680"|>}];
select = Select[test, (#location == "familyroom" &)];
Row[{test, Spacer[12], "\[LongRightArrow] ", select}]
]