Essentially, the position rating system works the same as most attributes.
It operates on a 1-20 scale: the higher the number, the more competent the player in their execution of their duties.
Natural: 18-20
Accomplished: 15-17
Competent: 12-14
Unconvincing: 9-11
Awkward: 5-8
Makeshift: 1-4
How does that manifest itself in the match engine?
The player’s comfort in a position acts as a direct modifier to their ability in that position.
A player with 20 for any position is able to play there without any adverse impact.
The lower the rating for a position, the more the player will struggle – particularly with their Positioning and Decisions – but their versatility can help them adapt if they have a high rating for that attribute.
Source: https://community.sigames.com/sigames-manual/football-manager-2023