A great amount of endeavor has recently been devoted to activity detection for massive machine-type communications in cell-free multiple-input multiple-output (MIMO) systems. However, as the number of antennas at the access points (APs) increases, the Rayleigh distance that separates the near-field and far-field regions also expands, rendering the conventional assumption of far-field propagation alone impractical. To address this challenge, this paper establishes a covariance-based formulation that can effectively capture the statistical property of hybrid near-far field channels. Based on this formulation, we theoretically reveal that increasing the proportion of near-field channels enhances the detection performance. Furthermore, we propose a distributed algorithm, where each AP performs local activity detection and only exchanges the detection results to the central processing unit, thus significantly reducing the computational complexity and the communication overhead. Not only with convergence guarantee, the proposed algorithm is unified in the sense that it can handle single-cell or cell-free systems with either near-field or far-field devices as special cases. Simulation results validate the theoretical analyses and demonstrate the superior performance of the proposed approach compared with existing methods.