Does ntpq -pn show a selected peer (indicated with a star)?
no_sys_peer and clock_sync are the last recorded system events, they don’t describe the current state. If no_sys_peer is reported, it means at some point no source could be selected. There is no event for selecting a peer, so even if everything works as expected, the event may stay there for a very long time, for example until the next leap second.
A list of system events is here.