Kinda feels that way to but everyone is dead set on it being Chile which, given what you mentioned, doesn't really support that which is why I proposed the idea that culture of the last city is a major indication that it's not in Chile.

Also the cultural thing. The last city has people from all over the world. Cultures are going to mix

Realistically they should be mixed but that's not quite what we see. We do see stuff like The Dawning but we also see more examples of modern cultural elements bumping shoulders with others while maintaining their specific traits unaffected by neighbors which implies outside of the tower there are specific communities which keep these traits from being lost to time. We see things like that today so it's not a stretch to imagine that would still happen within that timeline.

The colony lore tab proves its in South America. Also. The cultural influence almost means nothing. During the golden age, im sure cultruess changed and evolved. Some almost not resembling todays cultures

You say it means nothing as if what you say is objective truth. We see within the game very well preserved elements of various cultures through various mediums such as architecture and terms used within the game.