If locate_x is set to -yes then node index will follow the material displacements in x-direction; If locate_x is set to -no then node index will remain fixed in space in x-direction. Likewise for locate_y and locate_z. In 1D only locate_x should be specified, etc..
You can use -yes in combination with -updated for group_materi_memory to obtain a updated Lagrangian analysis where the mesh follows the material; if you use -no in combination with -updated, the material is still an updated Lagrangian solid but the mesh remains fixed in space (convective terms appear in the equations).
If materi_displacement is initialized, all of locate_x, locate_y and locate_z are set to -no and you are not allowed to specify node_locate. Otherwise, materi_velocity should be initialized; then default all of locate_x, locate_y and locate_z are set to -yes.
Even if nodes are replaced with node_locate, all geometrical entities (geometry_line, etc.) test if nodes are located on the entity in the start configuration (that is, the node records as initially present in the input file are used).