After enabling local NTP server and enabling “Intercept NTP client requests” on my Asus router, I can say this issue is resolved with this workaround. In fact, it’s even better than before because I can power cycle my camera while I don’t have any internet and it will still record properly (to properly simulate power and internet outage).
On older firmware like *.11.8391 it will still record properly after 30 min of internet outage, but if you power cycle them (without internet) then the recordings start saving in a randomly generated dated folder with a incorrect timestamp (this is expected behaviour).
@Crease @Seapup @carverofchoice @Newshound @K6CCC
FYI, that means it might be a potential workaround for OG cameras as well and overall cameras in general that are power cycled (due to power surge) without internet.