Index, Match & And function doesn't seem to be working when there is duplicate data

Hi,
I am editing an existing data in a report with new data. Basically old data does not have column "city" and I would like to add city for analysis. I can't completely replace the old data due to calculation issues (it is a long explanation), so I am using Index, Match & and functions to bring in "City" from new data to the old data. But unfortunately, it is giving me incorrect data (and yes I am using Shift+Ctrl+Enter). Please see attached example.

I am assuming it is because of duplicate data but I can't get my head around it. I would really appreciate any help.

Thank you!