Curious how this affects date/time algorithms and software libraries, particularly those that do not have a way to sync with an external authoritative source of time. I guess they all need to be updated to account for this change?
Yes there’s databases like https://en.wikipedia.org/wiki/Tz_database that track this and that are included in libraries that do the arithmetics. It’s why those libraries are often relatively bulky.
They need to be updated anyway, and always have been: somewhere in the world, someone changes time rules basically every year, or even every few months. All current OSes already have support for stating "locale X will not use daylight savings / will always use daylight saving, starting from day yyyymmdd at hhmm" through simple updates.