This problem persisted a while back but was fixed at one point. But somewhere from 4.20 it was reintroduced and became even worse.
I noticed that current pace is off but also when I do custom workout where, for instance, speed is set to be between 11 hm/h and 13 km/h and current speed is showing 12.5 I tend to get alerts I am too fast. Also when I run faster at 14km/h I get alert I am too fast but with notification "Too fast 13.0 km/h" and not actual speed. That is, alert usually shows just upper (or lower) boundary I set in my custom workout.
After the workout looking at the graph I often see that for one 1km lap I was always slower than, for instance, than 4:40 min/km but end pace shows 4:30 in the table. This really does not make sense. Especially since I sync with Strava its graph shows more exact figures (or that in this example I was around 4:30 +-5s but in the actual graph).
So Garmin, please fix this annoying issue. It seems that custom workouts don't look at current pace but maybe small custom small 15s interval set by Garmin.