Yes, being accurate with your lie entry is important to providing you with accurate insights.
For example, let’s consider a drive on a 500 yard par 5. Let’s assume the player hits the ball around 300 yards and ends up 200 yards from the hole. Depending on where the shot lands, the drive would be given a SG value of:
Fairway: +0.2
Rough: -0.06
Deep Rough: -0.30
Recovery: -0.73
Even the difference between deep rough and rough is quite substantial at 0.24 SG, so you can see how this could potentially have quite an impact on the overall score for a round, so accuracy in lie description is important.
In a similar fashion, this will also have an impact to SG Approaches and SG Short Game when players are hitting from a deep rough or recovery situation.