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You can change the position of the error messages by adding the following in a new HTML box on the blank LP that is displayed in the Iframe and that contains the form.
position: relative !important;
This code was given to me by Marketo tech support and was in a help article (https://community.marketo.com/MarketoArticle?id=kA050000000KysC), but that article has been recently revised and this code removed. I couldn't find any other help article with this. However, this code works quite well.