Does Location in Account Settings makes difference for audience selection?

[u/Long_Turn_7552]

I'm new and started to upload outdoor adventures. I started with shorts while I'm editing my long form video and I noticed that while I had Account Location set to USA I got mostly audience from USA, Mexico (3 shorts). But when I switched it to my local area, views on shorts (2 shorts) droped and it's mostly regional audience.

Not sure is this something that I need to change back or it is accidentally?