Process variations within Field Programmable Gate Arrays (FPGAs) provide a rich source of entropy and are therefore well-suited for the implementation of Physical Unclonable Funtions (PUFs). However, careful considerations must be given to the design of the PUF architecture as a means of avoiding undesirable localized bias effects that adversely impact randomness, an important statistical quality characteristic of a PUF. In this paper, we investigate a ring-oscillator (RO) PUF that leverages localized entropy from individual look-up table (LUT) primitives. A novel RO construction is presented that enables the individual paths through the LUT primitive to be measured and isolated at high precision and an analysis is presented that demonstrates significant levels of localized design bias. The analysis demonstrates that delay-based PUFs that utilize LUTs as a source of entropy should avoid using FPGA primitives that are localized to specific regions of the FPGA, and instead a more robust PUF architecture can be constructed by distributing path delay components over a wider region of the FPGA fabric. Compact RO PUF architectures that utilize multiple configurations within a small group of LUTs are particularly susceptible to these types of design-level bias effects. The analysis is carried out on data collected from a set of identically-designed, hard macro instantiations of the RO implemented on 30 copies of a Zynq 7010 SoC.