The agents use the “apparent server time” as the time they report for “last report time”. The apparent server time is calculated by checking the local computer’s clock time and the server’s time and then comparing them using the system’s performance counter. So all times you see in the last report time in the console are supposed to be the server’s time.
On a real computer, if this time is off, it almost always indicates a motherboard defect. But I haven’t seen this for the virtual computers. You might try following the steps for this similar issue and see if it helps you isolate if the performance counter on the virtual computers are somehow malfunctioning:
I followed the steps in the support article and it confirmed that the performance counter was incrementing much more than once per second, approximately 10 seconds for every one.
Interesting though was that we upgraded to 7.0.7.96 last night and I deployed the 7.0.7.96 client to the affected servers today and they are now fixed and reporting correctly.