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According to the living manual. Which also makes logical sense, however in the game units that join a battle via reserve activation use CV of a hex, maybe with fortifications, where they actually are.
I saw it before, but did not make a screenshot.
Today i got another example. You will never see 40 CV on map panzers in heavy snow in fortification 0. This panzer div joined the battle from an urban or heavy urban. For saves check server game vs Leumas

Fortunately, this is just a display issue. It's possible to generate some funny combat reports in '41 if you place an HQ in an urban location, like Smolensk. Any SUs, such as brigades, contributed by this HQ will be displayed in combat with a huge CV. The fight happens normally despite the display bug.