The UTIL current time strictly returns 24-hour time. An easy way to convert this would be to use a Time Input field as your target field. A time input field is configured for 24 hour by default, but you can uncheck that option for 12 hour time. If you are using a “Set Field” command, have it set your Time Input field to “Util – Current time”. So long as the Time Input is configured for 12 hour, it will properly convert it to display AM and PM for you.
I hope this answers your questions.