Yes, Starlink knows your location. To complete the connection there must be a ground station within 500 miles or it will not work. My HOME ground station is in Mexico City. However, there are 5 GS in MxC. I changed to a different one and doubled my speeds. The is a Starlink simulator at starlink.sx that show how the system can change both GSs and satelites.
The best source of information I have found is a you tuber JChristina. He is really good and does discuss VPNs.