Thanks for pointing that out - I have yet to rtfm and dive deep. I wonder how frequently time sync problems occur in virtual environments after ntp syncing - I've seen pretty erratic behavior on virtual active directory domain controllers even after syncing with hyper-v and vmware.
It’s been a long time since I messed with domain controllers but I believe Microsoft used to have explicit guides for handling time on virtual DCs. At that time we kept around a a couple hardware DCs to be safe but I do remember having the VMware agent correct the time could result in some bad results. I think it was because it immediately fixed the time and didn’t slowly correct the drift but it’s been a long time so my memory could be off.
Here’s their blog post on how they manage to live without atomic clocks. I’ve found at least one assumption of thiers that i don’t agree with, but notwithstanding that, it’s a good read.