It is, but there should be a middle ground. While it's fine that the other player remains in real time when he's far away enough, it's honestly exploitable as hell that the same player can stay in real time even in the middle of the battle area as long as he's in stealth.
When a players/characters are close enough to the action they should join the turn-based timing of the battle, period.
100%. The current system is beyond stupid and exploitable, and anyone advocating for such a thing to remain as is doesn't have any interest in balance or having this game be taken any seriously in regards to tactical combat (or the commonly touted 'immersion' that people will somehow turn around and use as an argument against implementing proper reactions), period.
Stealth in general needs a rework, we've all seen the footage of people getting repeated attacks in stealth without entering combat, or sneaking around and dropping tons of barrels in the middle of a crowd or getting free 100% probability shoves while everyone else is locked in combat. Solasta actually had a homebrew rule in regards to attacking from stealth, and it appears to have been regarded so well that I've noted tabletop groups actually adapting it now. My own tabletop group started using it today too.
IIRC, the normal rule is as such: You get to make an attack in stealth made with advantage (unless there are conditions that would normally impose disadvantage, which negates the advantage and turns it into a regular roll), and then you are automatically revealed.
The Solasta homebrew rule is as such: You get to make an attack from stealth made with advantage (unless there are conditions that would normally impose disadvantage, which negates the advantage and turns it into a regular roll), and then
you have to roll a stealth check against an enemy's perception check to determine if you remain in stealth. Depending on certain conditions, your stealth check may be done with disadvantage (if you're lit or wearing armor that imposes disadvantage on stealth checks). However, if you enter within a certain close range of an enemy's direct field of vision, you are detected no matter what - but you can also re-hide if you are able to break line of sight.
I have noted situations in Solasta where you don't make those rolls and remain in stealth regardless (possibly because the attacker is too far, but I had situations early in the game where I did stealth attacks from 10-15 feet away and didn't roll and I couldn't come up with any real possible explanation for that). Given new nature of this rule, I've chalked it up to bugs and believe the rolls should be happening no matter what. This also gives immense value to equipment that allows advantage on stealth checks and spells like Pass Without Trace, which are currently seemingly worthless in BG3 because you're already good as long as you stay out of sight cones. If something similar is extended to BG3, those checks should also happen if you use/move/drop any item with enemies nearby while you're in stealth.
Granted, I know this is a homebrew rule, but it would be an elegant solution to all the current overbearing stealth exploitation that happens in BG3, because even though Solasta's version of stealth can be expoited pretty heavily, BG3's version is somehow even more exploitable because of the time bubble/attacking from beyond enemy sight range stuff. Plus anything that forces encounters to be rebalanced around not having absurd freeform stealth shenanigans taken into account will result in a far more balanced experience.