Let’s modify the code a bit.
Try this:
add_filter( 'wp_show_posts_shortcode_args', function( $args, $settings ) {
if ( 7 === (int) $settings['list_id'] ) {
$args['meta_key'] = 'time';
$args['orderby'] = 'meta_value';
$args['order'] = 'ASC';
}
return $args;
},10,2 );
This should work as tested on a sandbox site.