New clock widget

Hmmm... yeah the time seems off by minutes ... it's probably a bug with the widget. Apple needs to rectify it.

In the mean time: try removing the widget and adding it again.

Also submit a bug report here : Feedback - iPhone - Apple

Do you mean that the clock widget does not display the time as per your current city?

If yes, then you have to edit the widget - select the city for which you want the widget to display the time!

To do this, tap and hold onto the widget for a second until the edit sub-window appears. Tap Edit Widget. Doing this will bring up a location tab, which you can tap on to set a new location.

I noticed that too with my iPhone XR, see screenshots below.

What exactly is it doing?

Note, that the clock widget is location basedm and by default selects Cupertino as the time to display. You can set it up to display the time in a location of your choice.