Source Localization Abnormality - EEG reference problem

This "CNT 2D channels" is very suspicious: it looks like you don't have 3D positions for your sensors.
Please post a screen capture showing the electrodes aligned on the head surface, as in this tutorial:
https://neuroimage.usc.edu/brainstorm/Tutorials/Epilepsy#Prepare_the_channel_file

If you don't have electrodes positions, you can use templates.
Right-click on the channel file > Add EEG positions > ICBM152 > ...

If you do have defined correctly the positions of the electodres, please post screen captures of your ERP and the noise covariance matrix image.