The fallacy above is that I said our two datetime2’s are in UTC, but SQL Server doesn’t actually know this. The datetime2 (and datetime) datatype doesn’t allow for time zone offsets so SQL Server really doesn’t know what time zone the data is in.
Using AT TIME ZONE on a datetime2 without offset information causes SQL Server to “…[assume] that [the datetime] is in the target time zone”. That explains why the two datetime2s above, intended to be in UTC, are actually seen as Eastern Daylight Time by SQL Server.
Read the whole thing. Dates and times are a lot more difficult than they first appear. And then they turn out to be a lot more difficult than that.