In the figure above we can see the location of two armature currents. In case 1, \$I_{a1}\$ is leading \$Vt\$ (terminal voltage) but lagging \$E_f\$ (excitation voltage). In case 2, it is obvious that \$I_{a2}\$ is leading both voltages.
I have seen many cases that have stated that case 2 is a leading pf. However, in a few references, I have seen people use case 1 as a leading pf. I would like to ask to make sure about which case is right when the machine is in generator mode with leading PF.
It is obvious the internal PF angle will have a different value in each case.