Hi TAY,
If customer entered and submitted form again, then it will create a new event registration records, system will take first name, last name and email address to match existing contact,
if there is a matching record, then the new registration will be associated to that contact.
We can see all event registration records of a contact in Contact form > Events attended tab:


If customer changed any one of field and submitted again(as example you given), then it will create a new contact(Tay Bowen vs Tay Jun Boon) and a new event registration record.
For your question,
> After doing some testing on registration, I found that the system would use existing contact information instead of value that customer entered.
Do you mean that in your environment, it didn't create a new contact even though the last name was different?
If so, you could check whether there was an event administration record that was active.
In Settings(bottom left) > Event administration:

I created an rule, it matches contact based on Email, if I change last name to a new value to submit again(keep first name and email address the same),

then no new event registration record and contact will be created.
Regards,
Clofly