iPhone 5 Time Zone Support Broken with iOS 8.1.2 Update

Just returned from a U.S. business trip where my work appointments (sync’d to enterprise Exchange account) were not showing up in the correct time zone. Everything was three hours off. Events entered on my iPhone were also showing up three hours off on my Outlook client.

But the biggest problem came when I returned home and the iPhone wouldn’t automatically change the time zone back. The “automatic” setting is not working, device time is still three hours slow (still set for Pacific time). The “time zone” is displaying as “New York.” Disabling automatic time zone set results in the correct date and time directly under the “time zone” set band, tapping on the band goes to the search screen that already shows “New York, U.S.A.” (general-date & time-time zone). Re-entering the correct zone (“New York”) does nothing different.

Just for fun, I tried it again with a manual set for “Phoenix, U.S.A.” The time display directly below shows the correct current Phoenix time (12:03 p.m.), but the device is still stuck on PST (11:03 p.m.).

Going back in and changing the time zone to “automatic” results in “New York” being displayed, but no change in device time. But disabling the “automatic” mode shows “Phoenix” again with Phoenix time directly below.

While all this stupidity is going on, a quick look at the “clock” icon show the correct New York time (with the sweep second hand), but the device time (displayed at the top of the home screen) and the alarm still displays three hours slow.

Anyone else unable to change their iPhone device time to the correct time zone?