Question: Let $G$ be a group. The finite residual of $G$ is the intersection of all finite index subgroups of $G$. We denote this with $\text{fr}(G)$. Note that $\text{fr}(-)$ is functorial on the category of groups and group homomorphisms. My question is: how does $\text{fr}(-)$ and free products relate?
Motivation: A group $G$ is called residually finite if $\text{fr}(G)$ vanishes, and residually finite groups have been studied a lot. It is a classical result that a residually finite and finitely generated group is Hopfian (Malcev 1940). That is, it is not (abstractly) isomorphic to any of its proper quotients. In a similar vein, one can use finite residuals to check whether certain quotients of groups $G/H$ are (abstractly) isomorphic to $G$. Indeed, finite residuals behave nicely with quotients and is functorial hence an invariant.
Elaboration: It is not too difficult to show that $\text{fr}(G)*\text{fr}(H)\subset \text{fr}(G*H)$. A proof is given below. I am interrested in when the reverse inclusion holds and examples of when it does not. For example, it is well-known that the free product of residually finite groups are residually finite. See e.g. here. Therefore, the reverse inclusion holds when $\text{fr}(G)=\text{fr}(H)=0$. A particular case i am interrested in is when either $G$ or $H$ is residually finite.
Proof that $\text{fr}(G)*\text{fr}(H)\subset \text{fr}(G*H)$: An alternative description of the finite residual is $$ \text{fr}(G)=\{ g\in G \mid \text{for all } \varphi:G\to K\text{ with $K$ finite}, \varphi(g)=1_K \}. $$ Consider a word $g_1h_1\cdots g_nh_n\in \text{fr}(G)*\text{fr}(H)$. Then since $g_i\in \text{fr}(G)$, we get that any homomorphism $\varphi:G\to K$ with $K$ finite maps $g_i$ to the identity. Similar for $h_i$. Since the free product is the categorical coproduct, we get by the universal property that any homomorphism $G*H\to K$ with $K$ finite is of the form $\varphi_G*\varphi_H$ where $\varphi_G:G\to K$ and $\varphi_H:H\to K$. These map all $g_i$'s and all $h_i$'s to the identity respectively hence $$ \varphi_G*\varphi_H(g_1h_1\cdots g_nh_n)=1_K. $$ This shows that $g_1h_1\cdots g_nh_n\in \text{fr}(G*H)$.