I am using modem firmware v1.2.3 and NCS v1.6.0. Event GPS_EVT_SEARCH_TIMEOUT never occurs despite setting fix retry time to non-zero value. I am using GPS driver (no new GNSS library). It works fine when using NCS v1.5.1.
Thank you for the feedback. I am discussing this issue with one of the developers. I will be get back to you when I know more, possibly over the weekend.
I spoke to the developer again. He suggested trying nRF Connect SDK v1.7.1 with your current mfw. Please give that a try, and if it does not work we will dig deeper into this issue.