This is the second day in a row that my time and date is suddenly just wrong. I changed it back yesterday, and today 13:38, it displayed the time as 02:04 and the date as the 24/08, although it is 22/08.

It was on Manual update, 24 hour. Now I changed my settings to the same as a friend of mine - to Automatic update, 24 hour, Harare (+2) for South Africa, prompt.

Which is the correct or preferred one and why does it change the last two days.

For what it's worth, my calender notes that was saved on yesterday and today, still went off correctly despite this.

If you set calendar appointments using the time zone, then the alert will activate at the appropriate time even if the time zone is somehow incorrect for your actual time zone location. But I have no explanation for the alert activating at the appropriate time even when the date is incorrect.

There are two setting on the time screen. You say you had it set to manual first, and then changed it to automatic. I assume you are talking there about the Update Time setting.

There is another setting, for Auto Update Time Zone. I believe you are saying you set that to prompt after the trouble. What was it set to before? If it was set to automatic then it would seem the network provided the wrong time zone info. If it was set to off, then it's a mystery, and you should watch it closely to see if it happens again and under what circumstances.

Just FYI, sometimes the network gives the wrong time zone to the device. Others have experienced it. I have too.

My advice is leave the Update Time setting to automatic. This is network time is universal time. And set the Time Zone setting either to off (and change time zone manually) or set it to prompt. Do not set time zone to automatic, or perhaps one day your alarm will go off late on the worst possible occasion.
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Will give that advice a bash and keep an eye on it, thanks.