The bug appears to me like this:

Even with UTC=no, Ubuntu stores the time as UTC at shutdown. But since
UTC=no, it expects the time as local, thus applies no timezone
correction, and the time is 4 hours fast for those in EDT country.

Took me the longest time to suss it out, since having automatic time
synch enabled fixed the time before a clock was ever displayed - for me,
the problem only showed up when I dual-booted over to Windows, or turned
off the auto-sync.

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https://bugs.launchpad.net/bugs/1377698

Title:
  /etc/default/rcS: UTC=no is being ignored

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