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Does VPNs even work against Big Brother apps? Using one really protects our privacy? (masking our location)

I am currently using Proton VPN (free tier) which is set to Always-ON and Block Connections on disable.

Today while I am going through my Gmail security option, on the devices/sessions I found my real location mentioned over there. Even when I use desktop I always connect to VPN.

On this issue I got couple of doubts:

  • Is this because I am using a free tier VPN? so it's not functioning properly etc...
  • Else google fixed my location based on my previous location history? I used my google applications without VPN for many years, I am just learning & following privacy tips recently.
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