The Van Kampen theorem implies that, given two path-connected (pointed) topological spaces $(X,p)$ and $(Y,q)$, we can relate the fundamental group of their wegde sum with both their fundamental groups: $$\pi_1(X\vee Y,p\vee q)\cong\pi_1(X,p)\ast\pi_1(Y,q).\qquad(\star)$$ Here, $\ast$ means the free product of groups. Note that the previous holds if we require the wedge point $p\vee q$ to have a simply-connected neighborhood in $X\vee Y$. This always happens if both $X$ and $Y$ are locally simply-connected.
Now, I am trying to construct a counter-example of the fact $(\star)$. For this, I am looking at a space that is not locally simply-connected: the Hawaiian earrings. I denote it as $H\subset{\bf R}^2$, and I take the basepoint $p\in H$ to be the “wild” point $(0,0)$. Now, I take $Y$ to be a circle of radius $2$ and centered at $(2,0)$ in ${\bf R}^2$, and I also take its basepoint $q=(0,0)$. Surely, the wedge sum $(H\vee Y,p\vee q)$ is not locally simply-connected, for the wedge point does not have a simply-connected neighborhood.
My question is: Does that provide a counter-example? My reasoning is as follows:
$\;(1)\;$ The wedge sum is homeomorphic to $H$.
$\;(2)\;$ In that case we have that $\pi_1(H\vee Y,p\vee q)\cong\pi_1(H,p)$.
$\;(3)\;$ We see that $\pi_1(H,p)\ast{\bf Z}\not\cong\pi_1(H,p)$.
I am unsure about steps $(1)$ and $(3)$ above. For $(1)$, a homeomorphism would be given by shifting every circle once to the left. For $(3)$, this is because we're adding a free generator to the (infinite) presentation of $\pi_1(H,p)$? But That does not convince me, since the free group on countably generators has the property that is is invariant under adding countably many free generators.
Please correct me wherever I am wrong!