Extreme Lag and Low TPS on a Good Computer

After updating to version 1.21.90 from version 1.21.84, there are extreme lag and low TPS issues that were not present before updating. The lag causes blocks to roll back after 1-2 seconds, and it even happens when only 1 player is online. The lag increases a lot after a player goes through a Nether portal. My server.properties has view distance at 5, tick distance at 4, and simulation distance at 4.

Hardware:
CPU: Intel Core i7-7700
RAM: 32 GB DDR4

This bug causes significant lag spikes and CPU usage spikes.

World Info

The world has always been in survival mode.

The world size is ~150 MB and not corrupted.

Inside the world, the lag is most noticeable when building (there are quite a few large builds on the server). Or when gathering falling materials such as sand or gravel.

Steps to reproduce:

Install the latest version of the Bedrock dedicated server for Linux

Download the attached world (I am not sure if new worlds have the same bug), and put it in the worlds folder

Copy my server.properties

Run the server and test with 1-5 clients