Hello,
In this link here, https://fam.state.gov/FAM/08FAM/08FAM040304.html, at the very last page, it mentions;
"Passport applicants who opt for the city or town of birth designation should be aware that they may encounter difficulties in traveling to, or in obtaining visas for entry into, certain foreign countries. A foreign country’s embassy or consulate may refuse to issue a visa that is required to enter that country and the applicant will effectively be barred from traveling to that country. An applicant who, having been denied a visa, requests a replacement passport with the country listed as the place of birth designation will be charged the normal issuance fee for there placement passport."
Is this true based on your knowledge and/or experiences?