Hang on, I thought that transwarp conduit only had a distance of 65 light years? At least that what Riker says.
This computer display from Descent makes it clear they're in the Delta Quadrant.
And the reason for the confusion is that our heroes made two
trips along that fancy conduit before reaching Lore's lair. At first, they are caught in the conduit in the wake of the Borg vessel, try to fight it, and return to normal space somewhat haphazardly, somewhere in the Delta Quadrant. They then fight the Borg, and lick their wounds, and LaForge shows the above diagram and tries to explain what happened. Then the Borg again appear and use the conduit, and Data escapes in a shuttle; when the heroes follow the shuttle by goading the conduit open all by themselves, that
trip takes them 65 lightyears further into the Delta Quadrant.
Probably the conduit system was just as "nonstandard" as the fancy-looking ship of the renegade Borg: the creation of a deranged (hive) mind, grotesquely and somewhat inefficiently imitating the achievements of the regular Collective.