وَمَنْ كَانَ بِمَكَّةَ فَمِيقَاتُهُ فِي الْحَجِّ الْحَرَمُ وَفِي الْعُمْرَةِ الْحِلُّ
Translation: For a person in Mecca, the entry area for Hajj is the Haram, whereas for ʿUmrah it is the ḥill.
This is the central distinction: someone present in Mecca enters Hajj iḥrām within the Haram and enters ʿUmrah iḥrām from the ḥill, outside the sacred boundary.
Do not construe al-ḥaram as only the interior of the Grand Mosque; the word names the wider sanctuary territory.