Your brain compares the differences in what your ears hear in order to determine the direction a sound comes from. It doesn’t only compare which sound is louder but also which sound arrives sooner, and the differences of the frequencies of each sound. High or low frequencies will arrive differently to the further away ear for example because it is blocked by your head. The shape of your ears also alters the characteristics of arriving sound depending which direction it comes from.
Earbuds send sound straight into your head, bypassing all these differences, so your brain correctly determines that this would only happen from a sound that is completely centered, neither left or right or forward/back.
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