I loaded up a new world on my server and I started to walk a little bit past the starting area and when I got out of the original chunks I had loaded when I spawned in The ocean began the generate in almost an incomplete way, as you can see in my screenshot. If I swim in the water, the generated water is perfectly fine, but if I go in the air spots I get sucked in, can't move, and eventually drown.
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Duplicate of MC-138108.
Can you attach a world download and seed?