Using the function #time() in a dataflow seems to result in the mashup engine 'correcting' it to
This seems like it is potentially a new issue, as Dataflows using this function did not have the same issue prior to today. Haven't tested in desktop or dataset refreshes.
Edit: after a bit more testing, this also seems to be occurring with #date and #datetime for me.
Edit2: It seems that using the following syntax resolves the issue
#time(0,0,0) as time