We are both correct. The TSB contradicts itself!!
1. Confirm that the customer experienced one of the following conditions:
- Clock will NOT automatically update for daylight savings time (with “Daylight Savings Time” set to “ON” in the navigation screen menu).
- Clock will NOT respond to manual adjustment through the navigation screen.
If one or both of these conditions is present, proceed to step 2 (clock replacement). (You are correct)
If one or both of these conditions did not occur, this bulletin does NOT apply. (I am correct)

I should get my vehicle fixed too! :)

Well, I have mine scheduled for service and mentioned to them about the clock not adjusting and such. The service advisor tried to change it herself. Why? I guess to prove that I was stupid or wrong or, of course to make sure. Told them that the salesman saw it and he tried to change it as well.
Told them that I saw a TSB for it and one of the technicians confirmed it and parts will have to be ordered. I'll let you guys know next week what the outcome is.

OK Boys this is what I did. I went out and disconnected the positive side of the battery. Left I off for a few minutes and it was fixed. I did set the clock adjustment to OFF on the daylight saving time and ON for the auto adjustment. Always hit the SAV button.

Good to know. But I think the problem is when the Auto Adjust setting is saved to ON, will your clock adjust automatically in the spring to advance an hour? For many of us, that automatic change does not happen. I can manually toggle the switch to OFF and then back to ON (which is essentially what you have done), and the clock will adjust to the correct time.

I will check my settings again, maybe DST must be set to OFF and Auto adjust to ON for the clock to work adjust automatically. I may have saved both settings to ON.

Had my clock replaced at the dealer.

All is working now. Guess I'll have to wait until March to see if it changes the time automatically.

Hopefully your problem have been solved. Most likely it want change automatically and you will have to change it manually like the rest of us.

I took my LS to the dealer today and they looked into the clock issue discussed on this thread.

After much back and forth they concluded (quite decisively it seemed) that the clock is not designed to automatically switch from DST and back. The menu allows you to do that and they claimed the TSB is written ambiguously, but means to refer to the menu not working or the clock not responding to menu commands.

At any rate it's such a minor issue who cares. But I would be curious if anyone with an LS460 actually has their clock auto-adjust for DST or if the menu option is the only way it changes.

This was at Johnson Lexus in Durham, NC for those who might be local.

Mine does not auto adjust

The clock in my LS460 doesn't auto-adjust for DST, either. One needs to use the menu to "tell" the clock when daylight saving time has started and ended so that the clock will adjust the hour accordingly.

I had to adjust mines AGAIN and it never auto adjusted.

You have to manually switch DST on and off.
What I've wondered though is what the Auto option does. Is it for when you cross over to different time zones that it auto changes the time? I haven't gone on a trip that changes times zones so I'm not sure if that's what actually happens. Anyone know?

Well, I believe it works like this.

You have a choice to adjust the clock manually - set whatever time you want - and let it run, accumulating whatever errors are due to its internal oscillator. Or, you have the option to automatically synchronize the clock to GMT (also referred to as UTC) as provided via GPS - that is what "Auto" refers to. Auto-synchronization would occur multiple times per day if it is enabled.

If you want your clock to display the correct local time, then you must enter the correct time zone for your location. And if DST is in use at your location then you must enable DST. Conversely, If DST is not in use at your location then you must disable the DST.

This makes sense since the clock is always pretty accurate with whatever is on my phone. I'll have to test it out by manually setting the time and then turning auto on to see what happens.

Your cell phone gets its time synchronization from the cell-site (tower) it is operating from. It may seem to make the Time-Zone/DST change automatically.

I know. But irregardless what the hour is, the minutes are always pretty accurate in the car as far as I can tell.