I believe I’m the only person in this thread to offer an example of 5e play that included a character with the Noble background (Braeda, the human Diviner Wizard) who actually used the Position of Privilege feature. And the player and I had talked most of that out, and Braeda had a very clear place in our game world, as did her family.
I’ll add though, that if we had not, I’d almost certainly still allowed the feature to work when used, and would have taken the opportunity to establish some of those details on the spot.
Someone may offer some counter example… but don’t expect it’s likely. Folks prefer to offer hypotheticals. It seems most folks treat the backgrounds as a pair of skills and little more.
Example One, Tessa, the good player. Her character the dwarf cleric, Devrona of the Lost Mountains. Is a noble in exile. Backstory: when she was young a red dragon destroyed her home and scattered her clan. Now, years later, she acts like a good dwarven noblewoman. Tessa typed up this backstory with plenty of details on her own time before the first game and gave me a copy. She read through my list of "books about dwarves", made a bunch of notes....and then made up her on more personalized notes about her clan with plenty of details on her own time before the first game and gave me a copy. And she made up a bunch of "dwarf nobles of her clan" notes with plenty of details on her own time before the first game and gave me a copy.
Then when the game starts, Tessa, role plays Devrona of the Lost Mountains, as a bit of a sad but proud noble dwarf, with the hope of finding her lost clan someday. So she role plays Devrona of the Lost Mountains as an adult character with adult feelings, emotions and thoughts....and even gives her character two drawbacks: greed and dragonslaying. She often tries to avoid combat and talk things out. She uses the "privilege" feature often, mixed in with plenty of role playing and often gives a gift of value to sweeten the deal. She treats anyone, except criminals and the like, with a fair amount of respect. Devrona of the Lost Mountains has a good memory for names and titles....through her player Tessa writing them all down.
Her Feature works best with related cultures, but her noble bearing and personality does get her at least some privilege in most settings. Though she has found some places and groups that could care less about her nobleness or anything about her.
Example Two, Kyle the Bad Player. So Kyle makes his self insert crazy killer knight fighter, Ragnar. He takes a minute to scribble a back story of "family killed by dragons and adopted by the a noble family to be a knight". And then he just plays a crazy version of himself in a fantasy world. But it does say "background noble" on his character sheet. He only "role plays" himself. He pays no attention to names, titles or any details....often just saying "I go talk to that guy over there" or something dumb like that. Every so often Kyle will see his back ground on his character sheet, and try yo exploit it. Randomly walk over to an NPC, act like a jerk and roughly a three year old and demand huge favors and money. And then whine and cry when he does not just get it automatically.
The tale of two nobles.