Well the exact same thing Copilot told me, so it doesn't help for sure. I wouldn't come here to ask before I double check everything...
The problem is in Azure itself and they tell you this only when you contact them directly, and problem is not published in Well-Known Issues who knows why. (they also tell you that) They say that problem is with LCM Extension Update and it will/should be solved with next update. Workaround is to delete everything in Resource Group except for Nodes (and storage account if needed for witness), to set UTC time zone on every node and reboot them. Then after rebooting to make sure that LcmController Service is running, which mostly won't be the case so you start it manually and then redeploy ARM Template. It should work and later you can get your timezone back.