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The phrase "a difficult situation in" is correct and usable in written English.
It can be used when describing a challenging or complex circumstance within a specific context or location.
Example: "She found herself in a difficult situation in the middle of the negotiation."
Alternatives: "a challenging scenario in" or "a tough predicament in".
Exact(52)
"Now it is such a difficult situation in Georgia.
"It is a difficult situation in the camp," he said.
"When he came we were in a difficult situation in terms of results.
It's a difficult situation in which to find oneself and one fraught with bitterness and resentment.
"I believe that they were very innocent victims of a difficult situation in Beirut.
I was simply trying to find my way through a difficult situation in which I found myself".
Similar(8)
It's more difficult to succeed in a difficult situation than in a fantastic situation".
The Soviet military authorities were therefore in a difficult situation, since, in view of conditions here, they required possibly two to three weeks more for their preparations.
Gilbert was put in a difficult situation early in his career at Texas, and those memories have unfortunately colored a clear view of his current status.
The company faced a difficult situation again in 1967 when the total number of vehicles produced was just 381 units.
On top of that they are in a difficult situation, a little bit, in the Premier League.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com