As of ArcGIS Pro 2.6.2, when using Overwrite Web Layer the time zone and daylight savings time configuration options always default to blank, even if the layer being overwritten currently has a defined time zone and DST enabled. Thus the default options will WIPE any previously established time zone and DST enable. Thus you must manually reconfigure those values appropriately on every overwrite. It would be preferable if the tool could pull these values (when present) from the existing service and auto-populate the correct default configuration values, so that the default operation maintains the overwritten layer in exactly the same state as it began. In my opinion, the default behavior of ANY type of "replace"/"overwrite" tool should be to retain everything except that which is explicitly requested to be altered.
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