Panel time defaults to 00:00

The time in my date&time field in the panel defaults to 00:00, the date however is correct.
The blueprint has it defined like so:
date:
type: date
default: now
time: true
step: 1
I’ve also tried to have time as a separate field entirely,but that didn’t work either. Can’t figure out what the issue is.
I can change the time manually, not ideal though.

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I’ve noticed the same (both in my own project and in a fresh v3.5.1 Starterkit) and since I could not find any existing bug report on this, created the following issue:

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Are there any updates on this matter? Is it really an issue or have I just not been able to figure out the correct way to configure the field…?