So I am not completely following what you are trying to do. You said "LA feature is coming only on its geographic location and other features are coming properly as per sch location". What determines sch location vs geographic location for you? Initially, unless you set a layout algorithm to be automatically applied for your diagram template, all nodes come in the initial geographic position and the links are simplified (no vertices). So are you telling the system to automatically apply an algorithm at the diagram type level?
Since you are adding things that are not 'physically' connected to the geometric network, the system will add them as 'orphan' nodes. Orphan nodes don't move (or in some cases only slightly move) when an algorithm is applied because they are not part of the connectivity. If you want them to be 'logically' connected, then you need to have the system create links during the spatial query rule.
The rule properties that you are using show using the relate option. Relate options are only useful when trying to create parent/child effects with a container. So the container is an object that contains children. If the children move, the container dynamically resizes. If the container moves, the children move relative to the container.
It sounds like you should not be using Relate option first of all. It seems like you should be using the create links option. One issue with that is that a link needs to connect to 2 nodes. It seems like you are adding nodes based on proximity to a link (busbar), so that won't work as you can't connect a link from a node (LA) to a link (busbar). So you may need to modify that rule so that you get the LA's based on some point feature that is always found on or near the BusBar, then you can use the create links option. If links are created, then the LA objects are 'connected' and therefore any algorithm will properly move the LA nodes (i.e. they are no longer 'orphan').
We also have a relationship rule. So if there happens to be a relationship class from those LA objects to other geometric network objects, that could be another way to add them.
Final thing I noticed is that you currently have the LA set as the source and Busbar as the target. That might be correct, but just making sure. Normally the 'source' is something you know the user will select. Typically that is something in the geometric network. Then you are saying that based on something in the source being selected, automatically have the system add something from the target whether the user selected it or not. So maybe I am wrong here, but it seems like you would want busbar as the source and LA as the target, but I don't know the use case here.
Rick