Balsam separation starts at the edges between two optical elements that are joined together. Fungus will show up usually on the outward (Front) and inward (back) surfaces where fungus spores land and make a home. Fungus can't get between elements cemented with Canada Balsam cement unless the cement starts to degrade and separate.
A couple articles for you:
What Is Balsam Separation And Can A Lens Be Repaired? | Outside The Shot Repair: “Shneideritis” & Edge Separation | Richard Haw's Classic Nikon Repair and Review