The way queue position works does take a bit of getting used to, but it should wind up making your lives easier - especially once we have an accurate algorithm for you.
Each party size is essentially its own queue, so for parties of 2/3/4 etc. you can be position 1 for that particular party size. This is because different party sizes will get sat at different rates as a party of 4 can't sit on a table for 2 for example.
If a customer is asking you why they're not getting seated but they're first in the queue, the best thing to do is to explain to them that they're first/second/third in the queue for their specific party size, so when a corresponding table becomes available they'll be next in line to be seated.
Hiding the queue position:
If you think hiding the queue position would be more beneficial for you and your guests, you can do so by heading to:
Settings --> System Preferences --> Open Advanced Settings (which is found at the bottom of the page) then toggle the bar on
Once enabled, guests will still see their estimated wait time, but will not be shown their queue position