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ところ doesn't mean "place/location" here. It's more likely "scene/situation". へや着を着たままの姿でいるのを見てやるぞ makes sense, maybe?
So to create a more familiar example newspaper style example: 腕に血のようなものを付けたまま。。。。の走り去る姿でいるのを目撃 されている could be translated closer to the slightly gibberishy English 'witnessed the scene of a figure running away (somewhere) with what looks like blood on their arm" Normally of course that is truncated to 姿を目撃 without a significant loss of meaning. The use of ところ(走り去る姿でいるところを)looks beyond normal for some reason, at least not acceptable as I have seen 姿 referring particularly to still being in a state of dress or physical appearance.ところ doesn't mean "place/location" here. It's more likely "scene/situation". へや着を着たままの姿でいるのを見てやるぞ makes sense, maybe?
to be in the state of ~