Does it stores a model of the world (like, some memory of the 3d structure) that goes beyond the pixels that are shown? Or is the next frame a function of just

Does it stores a model of the world (like, some memory of the 3d structure) that goes beyond the pixels that are shown? Or is the next frame a function of just the previous frame and the user input? Like (previous frame, input) -> next frame I'm asking because, if some world has two distinct locations that look exactly the same, will the AI distinguish them, or will they get coalesced into one location?