I think I may have figured it out, so the Pi-hole local time is correct, however the sync to the system and RTC in local TZ are off as show here.
Then I tried running these two commands below
I found these commands from these two threads from 2-3 years ago
Not quite sure why the problem didn't arise until now when the recent update came out with the RATE_LIMIT and DNSMASQ_WARN messages.
And I don't know how I can apply this fix to Bullseye version.