Mac chooses wrong date/time which is 7 hours ahead of the timezone chosen

I have chosen to set date/time automatically based on location:

The time now is 2:28 PM but Mac shows it as 9:29 PM:

On Terminal app, date command shows the correct time:

date
Sun May 31 14:29:26 PDT 2020

However, Mail, Calendar, Outlook etc., all show the wrong date which is 7 hours ahead. How can I fix this problem? The menu bar shows the wrong time as well:

I tried resetting NVRAM but that didn't help.

Check in System Preferences → Region & languages to see if "Region" is set correctly.

When the device has wrong date/ time, the location will also not get updated. (I don't know the correct reason, I've just seen this a few times.)

So the time will also be wrong since correct location has not been determined.

So to break the loop, you need to enter correct time at least once. Then verify that you can connect to internet in Safari and then set date/ time to auto.