Hello,
This is due to the fact that sources bring the correct flux, i.e. the correct quantity of tracer: discharge*(tracer value)*dt at every time step. Then as this is averaged over the basis of the point, which is like a volume around the point, the prescribed value is like diluted. The larger the mesh around the source point, the more it is diluted, so you never see the prescribed value at the source point but you get the correct quantity in the domain, which is what you want.
With best regards,
Jean-Michel Hervouet