Accurate time is vital for many cryptographic operations. For example, in the embedded space you may want to have a check that your current disk image (ideally checked by dm-verity) is actually up to date. And to verify the metadata signing that disk image using Uptane/TUF/SUIT or similar protocols you need verifiable time. Or you might need to contact a provisioning server at boot time, and need to be able to verify that server's TLS cert.
(Now, systemd used to have a bug[1] where time-sync.target would be reached before time was actually synced, and Poettering's response to the bug was the all-too-typical typical "yeah, don't worry about it, it's intended behaviour that the time-sync target doesn't mean that time is synced"[2]. But that did get fixed a couple years ago [3].)
[1] https://github.com/systemd/systemd/issues/5097 [2] https://github.com/systemd/systemd/issues/5097#issuecomment-... [3] https://github.com/systemd/systemd/pull/8494