I have upgraded the geolocation plugin in cordova 3.5 to fix the issue in iOS 8 by following this post.
http://shazronatadobe.wordpress.com/2014/09/18/cordova-ios-and-ios-8/
After running the app in iOS8 simulator, I am getting the notification 'Allow "MyApp" to access your location while you use the app?' But it still shows the error locationManager::didFailWithError
(null) after allowing the location service to use the app. I have tried to close the simulator and run it again and again. Also it seems that location service is active (Settings > Privacy > Location services > MyApp > While Using) by checking the settings in the simulator. By running the same app in iOS 7 simulator is working fine and able to detect the lat/lng.
FYI: I am using Xcode 6 to build the application.
Any help/suggestion will be helpful.