The answer is a yes and a no. This is because it is likely that your location can be tracked down even if you are using a VPN. For example, if the VPN you are using leaks your DNS, you can be tracked down. Similarly, if your phone's GPS location will track your location down if it is turned on, using a VPN won't change your device's time zone, which indicates that you have been using a VPN service. If you have only been connected to a VPN without taking appropriate safety measures, using VPN will be of no use. Also, there are certain websites and applications which you can access only after you turn your location on, which means VPN or no VPN, your location will be tracked down.
But if you have taken appropriate approaches to protect your privacy, then identifying your location through an encrypted IP is a big ask. But you need to remember that your IP is not the only way that provides your identification on the internet.
But, not everyone online can identify that you are connected to a VPN. However, some people can. Let me explain who can see you using a VPN and how they can access your information.