It would be difficult to provide an accurate answer to your hypothetical question. iPhones do not use protocol trickery to get your location. They simply use the built in GPS of your phone to locate you. Many ISP’s, phone Apps, content providers, etc. have aggregated the user data from phones and locations to more accurately reflect specific IPs to specific regions. This has been going on for a long time and the details of this large data aggregation has been able to more accurately maps IP locations. Its still not 100% but getting really close.
VPN providers have known IP pools which most companies know about and some block those. But be aware that even if you are using software based VPN (Windows program or phone App to establish your VPN connection), the device or Operating System can still route traffic outside of that VPN connection. Lawrence has proved this with Windows and using PIA VPN. Windows controls the network stack on the host and can still route traffic where it wants to, even outside the VPN connection. This is why it is important to use any VPN connection at the Network Layer such as in pfSense. Besides all of that, you need to ensure your DNS is being properly routed as well because that too has an effect.
If you are using PS Vue on your phone, your phone can still provide an accurate location using the hardware on your phone even while connected to the VPN. Other scenarios would need more details from you on how your connecting and what device you connecting with in addition to several other factors.
Its all marketing. Companies will say anything to get customers. People also believe Tor is secure but not many people realize that the US Navy built it and most of the exit nodes are owned by governments around the world.
VPN’s do help, but it surely isn’t an end all solution to online privacy. I found that Cell phones are the most difficult devices to protect your data and privacy. The combination of cellular network and WiFi complicate the potential solutions for customers. We have zero control of what gets sent across the cellular network and every app you install on you phone has the potential to leak/steal all your private data without your knowledge. Gotta love technology.