I had the same problem. This is my fix:
a) Turn off the automatic time zone and update time settings
b) Set your PC’s time manually to the current UTC
c) If the time in sim is still out by 1 or more hours, change the PC’s time manually to adjust for this
d) Will need to manually correct the time periodically, due to having no syncing - easy
i.e. I’m in Australia and sim time was 1 hour early (we’re in Daylight Savings at present). Currently real UTC is 2333hrs, but I’ve set my PC’s time to 0033hrs.
When I choose real time in a flight, it’s now showing the correct local time.
When the clocks change, I’ll need to adjust this again.
Now, I don’t fly with others and am not with a virtual airline, so I don’t know how this fix might afftect all that.