Unfortunately it's bugged and doesn't use the timezone setting. I just ran into this recently. https://github.com/zulip/zulip/issues/30856
In the issue you linked, the root problem is that the anti-fingerprinting browser feature has the browser pretending that its preferred timezone is UTC, resulting in the user seeing all times displayed to them in UTC.
It has nothing to do with the "global times" feature -- that feature just renders an element in your message in the same timezone that it renders the timestamps.