There are three options for configuring time sync for your Windows VMs hosted in Azure:
- Host time and time.windows.com. This is the default configuration used in Azure Marketplace images.
- Host-only.
- Use another, external time server with or without using host time. For this option follow the Time mechanism for Active Directory Windows Virtual Machines in Azure guide.
The Azure hosts themselves, are probably tied to an internal clock, as part of internal switches or firewalls, although the information isn't public, but are set the same across the globe with UTC.
Note the registry keys and GPO config, even for PCs not in a domain, you can edit the local policy using gpedit.msc as well.
VMICTimeProvider is the key registry item here.