Yes. God lives in a specific place—the heavens. Consider these Bible passages:
In a prayer, King Solomon said: “May you yourself listen from the heavens, your established place of dwelling.”—1 Kings 8:43.
Jesus Christ taught his disciples to address their prayers to their “Father in the heavens.”—Matthew 6:9.
After Jesus was resurrected, he entered “into heaven itself, now to appear before the person of God.”—Hebrews 9:24.
Those verses clearly indicate that Jehovah God is a real person and that he dwells, not everywhere, but only in heaven.
My understanding is, that 'heaven' can mean: spiritual place. Or: invisible.
So 'god and angels are in heaven' then would mean 'they are not material beings, but ghostlike spirits and/or invisible'. Like how JW understand the Bibleverse about 'new heavens and new earth"; it doesn't mean a real 'new heaven' and a literally 'new earth'. When Jesus went to heaven, he became invisible for people.
So my husband said: no, you're wrong, God lives in one place, that's what the Bible says.(well that's what he read on jw.org, he doesn't really know what the Bible says.)
But if God does live in a specific location, that must be a place. A place you can point at. A place you can find somewhere. A place you can travel to. Otherwise it's not a place, right?
If 'heaven' means a place you can point at, would that be that something like the sky? (yes, he said) But the sky, where? The sky above Europe? The sky above Australia?
No, my husband said. God is in the universe.
So the 'one place' is now 'the universe'. (And like you wrote; if God is IN the universe he created, that would be weird. Where did he live before?)
But If god is all around the earth (and not just in one place in the heaven/sky), and in the universe, that would mean he is everywhere, aka omnipresent. Something JW deny.
So I think they painted themselves in a corner.