Users on the Kagi forum are reporting mixed results. Some US users still see Lake Ontario, some Canadian users see Lake America. They also seem to agree that it should be classified as incorrect behavior.
https://kagifeedback.org/d/11381-lake-ontario-showing-up-wit...
As of this morning I started seeing new results. Now, a search for "Lake Ontario" returns both names.
As a Kagi customer, I find this was just about the worst way to handle it. I pay for a search engine because I want searches to cater to MY need for accurate and unbiased information. If a search engine can decide that someone else' political expedience is more important, there's a fundamental problem.
In case it was remotely in doubt, Kagi just demonstrated that they have the ability to change the labels that Mapbox gives them. It's fine if there was some implementation glitch if it comes with an explanation.
Currently I'm watching Kagi silently change results. If they're doing it for Lake Ontario, how can I be confident they aren't doing it with other search results?