Same here, You can see the correct time if you actually click the profile but on friends tab it shows all as "a few seconds ago".

Can confirm! It’s been happening with me as well since a few days ago. Even before this bug arrived, I always found that there was something wrong with it, like whenever a friend of mine would be online for let’s say 2 hours, and then log off the game, I would go immediately to the website and search my friend’s name, only to read that they were last seen 2 hours ago, where it would’ve been more logical to say that they were last seen a few seconds ago or at least less than a minute ago.

Perhaps instead of starting the "timer" whenever someone’s login in, the website should start it whenever someone logs OUT of VRChat, to make it as accurate as possible.