When dealing with Hyper-V virtualized domain controllers in a Windows Server 2008R2 environment, the default VMIC time synchronization often conflicts with proper domain time hierarchy. Here's the technical breakdown of your current state:

# Current time source status (problematic output)
w32tm /query /status
# Returns "VM IC Time Synchronization Provider" when it should show NTP source

The ideal time synchronization flow should be:

• PDC Emulator (VM) → time.microsoft.com (NTP)
• All other DCs → PDC Emulator (NT5DS)
• Hyper-V hosts → Domain hierarchy
• Member VMs → Hyper-V hosts (VMIC)

First, disable VMIC time sync for domain controllers (run this on each VM DC):

# Disable Hyper-V time integration
Set-VMIntegrationService -VMName "YourVMDCName" -Name "Time Synchronization" -Enabled $false

Then configure the PDC emulator's NTP client:

# Configure NTP on PDC Emulator
w32tm /config /syncfromflags:manual /manualpeerlist:"time.windows.com,0x8 time.nist.gov,0x8" /reliable:yes /update
net stop w32time && net start w32time
w32tm /resync

Add these registry entries on the PDC emulator (create if they don't exist):

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\W32Time\Config]
"AnnounceFlags"=dword:00000005

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\W32Time\TimeProviders\NtpClient]
"SpecialPollInterval"=dword:0000003c
"ResolvePeerBackoffMinutes"=dword:0000000f

For Event ID 134 ("did not resync because no time data was available"):

1. Verify UDP 123 is open between DCs
2. Check DNS resolution of time servers
3. Ensure w32time service is running

Sample diagnostic commands:

# Test NTP connectivity
w32tm /stripchart /computer:time.windows.com /dataonly /samples:3

# Check time source hierarchy
w32tm /monitor /computers:yourPDC,otherDCs

After making changes, verify with:

w32tm /query /status
w32tm /query /configuration
w32tm /query /peers

The output should show:

• PDC: NTP time source (time.windows.com)
• Other DCs: NT5DS with PDC as source
• Hyper-V hosts: NT5DS with domain hierarchy

When running Active Directory Domain Controllers on Hyper-V virtual machines, time synchronization becomes mission-critical yet surprisingly complex. The interaction between Hyper-V's native time sync (VMIC) and Windows Time Service (W32Time) often creates conflicts that break NTP hierarchies.

From your scenario, several symptoms indicate configuration issues:

C:\> w32tm /query /status
Leap Indicator: 0(no warning)
Stratum: 4 (secondary reference - syncd by (S)NTP)
Precision: -6 (15.625ms per tick)
Root Delay: 0.1562345s
Root Dispersion: 7.8234245s
ReferenceId: 0x564D4950 (source name:  "VMIC")

The key red flag is seeing "VMIC" as the source when your DC should be syncing with external NTP servers or the PDC emulator.

For domain controllers, we need to disable Hyper-V time synchronization and let W32Time handle it properly:

# Disable Hyper-V time sync for the VM
Set-VMIntegrationService -VMName "YourDCVM" -Name "Time Synchronization" -Enabled $false

# Configure NTP hierarchy properly
w32tm /config /syncfromflags:domhier /update
net stop w32time && net start w32time

# Force immediate sync with PDC
w32tm /resync /computer:PDC_FQDN

These registry settings help stabilize time services:

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\W32Time\Config]
"AnnounceFlags"=dword:0000000a

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\W32Time\TimeProviders\NtpClient]
"SpecialPollInterval"=dword:0000003c
"ResolvePeerBackoffMinutes"=dword:0000000f

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\W32Time\TimeProviders\NtpServer]
"Enabled"=dword:00000001

When encountering "no time data available" errors (Event ID 134), follow this diagnostic sequence:

# Check time service status
w32tm /query /status /verbose

# Verify NTP server reachability
w32tm /stripchart /computer:time.windows.com /dataonly /samples:5

# Test domain hierarchy sync
w32tm /monitor /computers:PDC_FQDN,OtherDC_FQDN

# Check peer list
w32tm /query /peers

1. Never enable Hyper-V time sync for domain controller VMs
2. Configure the PDC emulator to sync with reliable external NTP sources
3. Use Group Policy to distribute time settings uniformly
4. Monitor time drift with PowerShell scripts:

Get-WinEvent -LogName "System" -MaxEvents 100 | 
Where-Object {$_.Id -in @(12,22,29,134,144)} | 
Select TimeCreated,Id,Message