Yes, it does propagate to every port.
I had a dept. create a topo loop on their switch (I'm not running STP because of some legacy Db apps) and while the whole switch did freak out, the switch logged the two ports that had the conflict as having excessive bcasts first.
The switch would flush it's ARP tables and begin to rebuild them, and those two ports would again report problems first.
It was pretty ugly, when that edge switch would flush it's table it caused the core switch upstream to also flush, which caused other edge switches downstream from the core to flush, on and on and on. By the time I arrived there was almost no data moving on the network as these ARP flushes swept through the switches.
The only way I could determine where the problem started was through the logs kept by the switches. And if I had not set all switches up on NTP those logs wouldn't have helped.