The milliseconds are not correctly parsed when setting an (f) custom format to the ShortTimePattern property.
A workaround for this would be to implement custom parsing:
private void TimePicker_ParseDateTimeValue(object sender, Telerik.Windows.Controls.ParseDateTimeEventArgs args)
{
string input = args.TextToParse;
DateTime res;
bool isValueParsedSuccessfully = DateTime.TryParse(input, out res);
if (isValueParsedSuccessfully)
{
args.Result = res;
}
else
{
args.IsParsingSuccessful = false;
}
}