GrapheneOS Automatic time zone doesn't make any connection. It simply uses the time zone of the cellular network.
Interesting thanks ! I just checked on a device that will always live on airplane mode and no wifi (and never got any SIMcard inserted), and it has accurate time (not atomic time but minutes displayed are the same as a machine using internet/ NTP time) even though I did set its time manually and/or connected it to a wifi network very long time ago (months).
Could it be that it adjusts its clock when I use it for GPS navigation? In its settings > location > location services, it has and wifi and BT scannings off, google location accuracy off, but emergency location service On (with the google icon near it).