I don't think it matters where you have the vsr. As long as it disconnects the starting battery at <12.7v (or whatever it's set at) it's doing what it is supposed to. Not a bad idea to have fuse near the starter battery though.
The problem is that voltage drop is very real & the linear distance between the battery & the VSR is actually crucial.
Take any 12v deep cycle battery & connect it to a fridge with 5 metres of 6 B&S cabling. Run it as is & it will run until the battery discharges to a voltage that the fridge can't run off any more.
Now recharge the battery & put a VSR into that set up, right up on the battery; it will run until the VSR shuts off at about 11.8v or whatever setting you have your VSR on. What is crucial here is the actual time it ran for.
Now move the VSR incrementally away from the battery & towards the end user of the energy (the fridge)
Each time you move the VSR away from the battery, the time that the usable energy is available to run the fridge will drop dramatically. Add the variables such as older batteries, or hot humid weather & the issue gets greater.
Thus ends my involvement in any future 12v threads or discussions lol.