I think that the issue causing these discrepancies, is how Asobo is displaying the clouds in relation to the METAR. It would appear that Asobo is rendering the clouds from METARs in heights above sea level (MSL), rather than height above ground level (AGL).
See my topic on it here, and please vote so it gets fixed ASAP:
Are cloud bases in new METAR system in AGL or MSL? - Bugs & Issues / Online Services & Activities - Microsoft Flight Simulator Forums
Bizarreā¦ Broken at 700ft and 9999 visibility is modeled as ILS CAT III conditionā¦ Airport 2600ft MSL
Please Asobo, just revert to the previous weather systemā¦ Hope we donāt need to wait until Feb 22
edit: less than 10min after the first screenshot and still the same METARā¦ unbelievable
If you look at my post right above yours, it appears they are using MSL heights to display the cloud layers, rather than AGL. Therefore, with an airport elevation of 2600ā MSL, you would be in the heart of a thick overcast layer being reported at 1500ā MSL. Itās not how it should be, but that is how Asobo appears to have done it. Please vote on the topic Iinked above to get this fixed, as it appears to be the issue.
Really amazes me how they can get something so basic, so wrong. Will vote your topic.
Yeah, I agree. Such a basic thing to screw up, but that one little detail has a huge negative affect on realism.
Yes it absolutely does. Now you mention it when I flew from Bristol yesterday which has an elevation of around 700ft and it was meant to be overcast at 300ft but I was literally in the thick of the cloud, I thought something seemed off and wondered this myself as well. Good spot.
Is there any official acknowledgement of this by the devs? Iāve messaged privately a mod on here who has said they are aware of the issues with live weather but canāt say Iāve seen anything official?
I havenāt seen anything official, no. Seems to me they were thinking it may be a server issue at first, but rather, it just appears to be a disconnect in altitude type read off of the metars. I did submit a support ticket. But, I still have support tickets from a year ago that say āsolvedā but that arenāt actually solved.
Ahh okay. Well Iāve PMād that mod again to ask if he has any update, Iāll let you know here if he gets back to me.
Even just an official word of āyes weāre fixing itā would be nice
The Lugano example I highlighted in my post, would explain why people would think it is a server issue. To the casual observer, it appeared to be clear skies. When METAR says overcast, everyone would simply think the servers arenāt injecting weather. It was injecting it alright, just below ground 
Sounds good, thanks
Yeah that would make sense, but how on earth does something like that slip through testing?
Beats me. No clue
Linked your thread into the first post also
No wonder I have clear skies in Mexico Cityā¦It was overcast at 2000 . The clouds are underground so it makes sense.
The third picture looks like smoke from a missile. LOL
Voted! Good find.
I know exactly how you feel. Itās a real shame, because SU7 was also targeted to improve live weather, with apparently new Meteoblue data and also blending METAR data with the meteoblue to give an overall more accurate weather depiction.
I donāt know what exactly has gone wrong in SU7, but whatever it is has gone massively wrong for the weather, it just looks awful now and is even more inaccurate.
I think we are all hoping itās something that will be bugged or patched and will then work as intended, because the theory behind it does make sense. Hereās hoping.
Iām sure like myself and many others, we all see the huge potential in MSFS, but it feels like deja vu of SU5 all over again with more things broken than fixed.
I just wonder, how can old weather blended with future predicted weather be accurate blended? If old weather that says clear sky and future predicted weahter that says ovecast be blended and be accurate? How can old weather that says overcast weather and future predicted clear sky weather be accurate? I think itās to much difference between them to be accurate all the time. Thatās maybe only my opionion though.
I was thinking about this too. The only way I could see it working, for Europe at least, would be to largely rely on the METAR data for weather from ground up to 5,000ft, because a lot of airports in UK/Europe donāt report the cloud above 5,000ft, it gets reported as CAVOK or NCD (No Cloud Detected) and then rely on Meteoblue for the upper level data, or areas with no METAR source. And somehow blend that together.
It definitely doesnāt sound easy.