I have a lined fretless bass that I had to have the dots moved to where the fretlines were as I didn't get on with them between the lines (and I don't look at the fingerboard when playing).
I also have an SRF705 fretless which has small edge markings for each fret position and dot markers between the edge markings. I get on with that fine.
The assistant to the runner of the open mic I go to has a Squier bass which was originally fretless but which he had fretted, so the fret markers are at the frets, like the OP's. I've played it a few times and, like the OP, the dots rather confuse me.