My understanding, though, is that if you’re on a VPN, it’ll also show that as well.
Yes, supposedly with a ! after your location, indicating it is suspect.
The IP addresses of VPN providers are well known, but the only information they get is that your packets are coming from and going to a specific VPN server. The packets between your computer and your VPN are encrypted, so there is no way of identifying your local IP address, which ties you to your Internet Service Provider who could identify you if you weren't using a VPN. All your ISP knows is all your encrypted traffic is going through a VPN server.
That’s my understanding too. They know you’re on VPN. For example, if you’re out of country you can’t VPN Hulu to see the shows in your original country.