Artist upset about the vacant position in studio (7)
I believe the answer is:
atelier
'studio' is the definition.
(atelier is a kind of studio)
'artist upset about the vacant position' is the wordplay.
'artist' becomes 'ra' (Royal Academician, member of Royal Academy of Arts).
'upset' says the letters should be written backwards.
'about' indicates putting letters inside.
'vacant' means to remove the middle letters.
'position' becomes 'lie' (lie is a kind of position**).
'the' with its middle removed is 'te'.
'ra' backwards is 'ar'.
'te'+'lie'='telie'
'ar' enclosing 'telie' is 'ATELIER'.
'in' is the link.
(Other definitions for atelier that I've seen before include "Artist's workshop, studio" , "Artist's studio (French)" , "Designer's workshop" , "Tie earl up in the artist's place" , "room for artist" .)