Most of the playlists that YouTube Music displays to users are personalized. Some based on your activity in the app, taking into account your musical tastes, and others based on location.
Of course, a dynamic that is implemented if the user has given the necessary permissions for their location to be used.
Currently, if you’ve opted in to the YouTube Music app’s location permission and Google’s location history, we use your precise location to personalize your music experience. They may recommend a Workout Essentials playlist at the gym, your Focus Supermix at work, or an Unwind playlist for relaxing at home
However, this dynamic of recommendations will stop working shortly. As the YouTube team mentions, as of September 26 they will stop using precise location as a recommendation criterion.
They believe that the app has evolved to offer multiple recommendations to users that can be enjoyed in different contexts throughout the day, without the need for YouTube Music to rely on precise location at all times.
So as of that date, YouTube Music will no longer use precise location as a factor for the app’s custom dynamics:
We will remove all accurate location-based recommendations, location settings, and app permissions. We will also delete all YouTube Music data derived from your precise location. This change will take effect on September 26.
One detail to keep in mind is that this change will only apply to the “precise location” and not to the approximate location. So you will still see recommendations based on your country or region, for example, “The best songs of Spain of all time”, etc.