The filters are not that precise.
You can make it clear in your job description that your project requires the freelancer to live in a certain city. Keep in mind though that this won't prevent applications from those who don't live there.
As Christy says.
When you check the whereabouts of a freelancer, also check that the hour (stated on their profile) tallies with yours. Many freelancers claim to be in the US (for example) when this is far from the truth.
But also, Upwork is a global marketplace with skilled freelancers from all over the world. Part of the "point" of Upwork is that it allows you to find talent that you might not be able to find locally. Is there a specific reason you need to hire someone local?