I see that’s already been answered. I don’t bother posting all my findings here since it is typically met with skepticism and unnecessary back and forth. I had already provided info to Matt showing that the indicated altitude is correct and the pressure altitude incorrect with baro set to STD. I’m glad to see that his response here is a bit different and that there is a possibility for this to be fixed.
As for VATSIM, I think I’ve already established why it is extremely unlikely that it is indicated altitude that is being passed on. After some more testing, I’ve found that both VATSPY and the online map at VATSIM show the same altitude as the “plane altitude” simvar. I find this very interesting as it will only be the same as the indicated altitude when baro is set to the actual QNH. So with baro set to STD above the transition altitude, it will always be off unless pressure is actually standard at sea level. (Note: This is not definitive regarding what VATSIM ATC sees.)
Above TA with baro set to STD:
