Correct, 2.17 does include the geomodel and will use your location (or location data embedded in a photo) when suggesting an ID. So this is not a bug.
Seek’s goal is to get people outside and exploring wild nature, it’s not really meant for identifying images on a computer screen, so use of the geomodel should increase accuracy for that main use case. For example, it should no longer suggest Apis cerana in North America, or Ardea herodias for Ardea cinerea in Eurasia.
And as noted, if you don’t want location to be used for ID purposes, you can remove location access permissions for Seek. That being said, I’d be open to an in-app setting to turn off location use when making ID suggestions.
Edited to add:
Introduced ranges are included in the gemodel. For example, Conium maculatum is native to Europe and North Africa but is highly invasive in elsewhere and the geomodel reflects that.