Apparently xtools-prod03.xtools.eqiad.wmflabs which sits in eqiad1 has problems with systemd-timesyncd:
Timed out waiting for reply from dns2002.wikimedia.org
same for dns1001
I bet the prod DNS servers won't let the new region talk NTP. In the main deployment I get Synchronized to time server 208.80.154.10:123 (dns1001.wikimedia.org).
Thanks to @Tgr, @fgiunchedi and @MusikAnimal for help finding this.