I’ve also seen Kagi’s result quality start to decline in the last few months, and I now automatically bang to Google for anything local.
My unsourced theory is that they’ve optimized getting their search costs down, at the expense of some edge cases that don’t show up in their KPIs.
I’m still a satisfied customer, the product makes me two Starbucks coffees a month happier than I would be still using Google for everything.