Blocks of the world will be rendered inside the view-distance-border-region (one chunk wide) when:
1. Blocks are built above Y=240
2. The Viewport (Eye-Height) of the player is above 256
This only happens (in singleplayer) if the blocks area inside the 1-chunk border that is loaded but not visible.
The attached screenshots show this problem.
First screenshot:
The blocks are within the set view distance and everything is visible as expected
Second screenshot:
The blocks below 240 are unloaded as expected
The blocks above 240 are still visible outside of the set view distance
The problem exists in 1.15.1 singleplayer and 1.15.1 server. Setting the worldtime to /time set 13000 helps spotting these problems.
Works correctly in 1.16.5 and 21w11a