Line Time Position?

should the line position in the pattern editor update the time over in the top right corner?

Yes it should.

It shows the playback position, not the cursor position. What exactly is the problem if there is one?

The only known problem is that the time shown can deviate drastically when using speed/tempo commands in an old Renoise <= 1.9x song that got converted in Renoise 2.0
This incompatability problem is not fixable either.

Aehm no. There is one small quirk, that the timer is wrong immediately after having upgraded the song. As soon as you start playing or reload the song all is fine then…

Or do you mean something else?