I'm wondering if the temp sensor is sitting too close to the motor. I was running in Pigeon Forge stop-and-go traffic last Summer and ambient temp was around 94-95. The temp showing on the bike was around 102 to 105. So, to answer your question, yes. Mine is reading warmer than actual on a daily basis, too.
Especially in the summer, sitting/riding on pavement always shows a higher temp due to the heat radiating from the road surface. Not uncommon for the bike‘s temp gauge to show a higher temp when a weather app shows less. Ever notice when riding at night...the temp drops when leaving the city heading to the country...no roads, buildings, etc. to give off heat.
Tiger, I don't disagree with your explanation. However, on the last few HD's that showed ambient temps, the ambient temp showing on the bike was within a degree or so of actual ambient. It's possible to receive an actual, accurate reading on a motorcycle no matter the external contributors. Yes, you get a higher reading in the city vs the country but that's normal no matter what you drive/ride.
Temperature accuracy isn't that important anyway...if you are set on riding, would outside temp stop you?... but it would be nice if it weren't off that much.