I am also having the same issue, its frustrating and all the data is kind of useless.
I am having the same issue, time is correct on watch and app, however if i look at the step or sleep graphs, they are in the future.
About to throw this rubbish into the the trash
Try re-syncing the watch time with GPS: Menu (on the watch) » Settings » System » Time » Sync With GPS (may differ, depending on the watch model, in doubts consult the user manual). Also set the 24hr time format, just to make sure you are looking at the right time, and not at one 12 hours shifted.
I have already done all that, synced to GPS, verified it is on correct time. It syncs time from my phone which is also correct as it is automatic also.
I also tried resetting the watch(instinct) without deleting data. Once it was reset, it seemed to pull all the incorrect data back again. So my step count and sleeping times are in the future again.
Everything worked great with the watch when it was new, then i went traveling, and the watch would sync the local time from my phone and worked great, but ever since i got back my step and sleep tracking are in the future.
Fast becoming an expensive paperweight, seems pretty stupid for a device this expensive that is connected to other devices to be this retarded.
Try rebooting both the watch, and the phone.