I’m not 100% confident in this, but my understanding:
$PWD should be the temporary build directory, which typically has the source copied into it already.
$src is a valid reference to the source (I think in the store)–but this isn’t a mutable copy and it isn’t the one that’ll have patches applied and such. You can definitely find packages using it, but it might be a mistake and can be a footgun. (For example, using it can cause people trouble with overriding in some additional patch/substitution.)