Display Recently Added Custom Post Types with Custom Taxonomy Shortcode

Use get_the_terms to fetch terms for a specific post:

$terms = get_the_terms( $cpt_post['ID'], 'location' );

if ( $terms && ! is_wp_error( $terms ) ){
    $output .= '<div class="cpt-meta">';
    foreach ( $terms as $term ) {
        $output .= $term->name . ' ';
    }
    $output .= '</div>';
}