For those a bit newer to this topic and perhaps unaware, this problem was discussed in some detail during the November 2023 developer livestream. I had submitted a question about this problem and it was discussed in some detail. That said, the discussion did unfortunately boil down to Asobo needing to investigate it. I’ve neither read nor heard anything substantial about their investigation since it was raised last November.
During that livestream, Asobo did say that MSFS doesn’t use the system clock, but rather a hardware clock. In addition, because of how MSFS is coded, there are two or even three (or more) separate clocks running concurrently for different things. They alluded to the problem perhaps being related to the Xbox becoming bogged down while running MSFS and the resulting low framerate affecting the clocks.
On PC, in my experience the clocks keep time perfectly. So, I suspect the problem is related to how the clocks are affected by the heavy demand MSFS generally places on the Xbox hardware.
I do recommend reading the relevant portion of the transcript. It is titled “Time running slower on Xbox” under the Q&A Session 2 sub-section, and is available at this link: