The bug
This bug is distinct from MC-107869, which is about large-hitbox-animals suffocating during world generation.
Small animals like chickens can also suffocate during world generation. However I have only witnessed it at large coordinates.
How to reproduce
Make a new creative world with seed 5426371214953745958
/tp 9101096 105 9099555
→ See nearby chickens suffocating in the walls of extreme hills
Speculation
This might be indicative of underlying world logic using single-precision rather than double-precision floating point to represent entity position values, similar to MC-123388.
Could be related to MC-123152