It's based on experience. You can try searching 2 keywords "make money online" and "web design services" on Google.
"MMO" will have AI overview and cards with methods to make money online. "Web design services" will have tabs like "near me", "open now", "online appointments", etc. and below that you can see "Results for **your current location**" and next to it, there will be a button "Use precise location". After a couple of results, there will be a map featuring Places.
For "make money online", Google didn't bother about local services, but for "web design services", they explicitly filtered results based on location. It wasn't the case earlier and they used to do it only when you search for "services near me" or "services in NY" etc. But now they started filtering results based on user intent.