Yes, and that's an incredibly shitty system because it defies all logic and reason.

It didn't make it non-universal, it gutted a broken system instead of fixing it so you get shit like "But I've never even heard of this outsider!" - Vilkas when the Dovahkiin, hero of the Stormcloaks, Champion of the Dawnguard, and Thane of the fucking town he lives in, asks to join The Companions late game, implying he's never even heard anyone say that name before and hasn't left Jorrvaskr for 3 months.

And weak moments like that are all over the game unfortunately, and personally break my immersion far more often than people who could have logically heard of my character but haven't personally met them stammering out their gratitude entirely too often and without context.