IP location is a database guess
Nothing in an IP address says where it is. Companies build databases that map blocks of addresses to places, from what providers publish and from where devices using them turn up. When a provider moves a block of addresses from one city to another, the databases catch up weeks later.
Mobile networks
Phones on mobile data often get an address from a gateway hundreds of miles away. That's why your phone can show another state while your Wi-Fi at home shows the right city.
VPNs, work networks and iCloud Private Relay
With a VPN on, the location is the VPN server's. Company networks often send traffic through a head office. Apple's iCloud Private Relay shows an address in your region, not your city.
Can I fix it?
Your provider can't change the databases for you, but you can ask the big ones to correct your address block: MaxMind and IP2Location have correction forms. Sites usually pick up a fix within a few weeks.
Wrong city on purpose
If you'd rather sites didn't see your city at all, a VPN shows the location of a server you choose. Ways to hide your IP.