Indeed. The built-in Busybox NTP server does not have this issue. Even when tcpdump can't get the right time the Busybox NTP can.
Code:
00:00:00.803208 IP (tos 0x0, ttl 128, id 6449, offset 0, flags [none], proto UDP (17), length 76)
192.168.1.2.ntp > 192.168.1.1.ntp: [udp sum ok] NTPv3, length 48
Client, Leap indicator: clock unsynchronized (192), Stratum 0 (unspecified), poll 8 (256s), precision -23
Root Delay: 0.039123, Root dispersion: 9.206100, Reference-ID: (unspec)
Reference Timestamp: 3832375966.912279299 (2021/06/11 04:52:46)
Originator Timestamp: 0.000000000
Receive Timestamp: 0.000000000
Transmit Timestamp: 3832376360.756280199 (2021/06/11 04:59:20)
Originator - Receive Timestamp: 0.000000000
Originator - Transmit Timestamp: 3832376360.756280199 (2021/06/11 04:59:20)
04:59:20.323361 IP (tos 0x48, ttl 64, id 0, offset 0, flags [DF], proto UDP (17), length 76)
192.168.1.1.ntp > 192.168.1.2.ntp: [bad udp cksum 0x4bb1 -> 0xaae7!] NTPv3, length 48
Server, Leap indicator: (0), Stratum 2 (secondary reference), poll 7 (128s), precision -9
Root Delay: 0.033462, Root dispersion: 0.012481, Reference-ID: 78-73-83-84-no185.tbcn.telia.com
Reference Timestamp: 3832376344.910919189 (2021/06/11 04:59:04)
Originator Timestamp: 3832376360.756280199 (2021/06/11 04:59:20)
Receive Timestamp: 3832376360.323260307 (2021/06/11 04:59:20)
Transmit Timestamp: 3832376360.323286056 (2021/06/11 04:59:20)
Originator - Receive Timestamp: -0.433019892
Originator - Transmit Timestamp: -0.432994143