METAR Report weather conditions important to aviation.
Your METAR shows that quite well by only referring to clouds below 1500m and significant clouds above.
This does not mean there are no clouds at all above 1500m, it just says there are no clouds with significance to aviation.
Then METARs only state visibilty up to 10nm. Everything else is treated the same.
So 11nm and 60nm visibility are the same when relying on METARs.
And the biggest problem with METARs: they only report conditions at the station, not the weather between stations, givng either big gaps or inaccuate weather.
The default weather model has its advantages but as well it shortcomings.
The ideal sim would have both integrated and smooth transitions between both models.
Till this exists, i prefer the inbuilt weather.
I only experience problems over the US. It seems like high altitude winds are missing there most of the time and sometimes all other weather data as well.
But over Europe i get a pretty good, realistic weather with high altitude winds working fine.
So i dont think that the Weather model is the problem with MSFS but simply the data servers reliability needs improvement.