Retrieval-augmented generation (RAG) is widely assumed to mitigate factual errors in large language models (LLMs), but it remains unclear whether retrieval uniformly compensates for missing knowledge. We study this question in a controlled factual QA setting over public companies, constructing a benchmark of approximately 2,000 firms across global equity indices. We evaluate six LLMs on four atomic attributes under four conditions: no-context, perfect context, misleading context, and distraction context. We find strong geographic disparities in no-context accuracy, indicating uneven parametric knowledge. While perfect context improves performance, it does not eliminate these gaps: gains are correlated with baseline accuracy, suggesting retrieval effectiveness is coupled to internal representations. Under misleading context, models frequently copy incorrect information. Larger models improve overall performance but do not remove these structural effects. These results challenge the view of RAG as a universal corrective and highlight the interaction between model knowledge, context quality, and entity representation.
Modern conversational AI systems frequently rely on user metadata to localize responses, yet the unintended regional biases introduced by this hidden context remain poorly understood. In this work, we evaluate location leakage: the phenomenon where a model generates geographic references despite receiving a geographically neutral user prompt. Across both creative writing and open-ended Q&A prompts, even state-of-the-art LLMs systematically favor region-specific outputs when exposed to location metadata, with leakage spiking by up to 793 times above baseline (e.g., from 0.04% to 31.7% for Llama 3.1-8B, and 21.3% and 8.8% for Qwen3-8B and Claude Sonnet 4.6, respectively). Our analysis further shows a novel structural conditioning effect: replacing the injected location with the placeholder "Unknown" still elevates leakage by up to 72 times above baseline, demonstrating that the user profile frame itself, independent of any geographic content, acts as a generative conditioning signal.