When shoting arrow with bow or crossbow using the lowest render distance cause the arrow fly https://imgur.com/a/mCqSLCO it was in previous snapshots also too.
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and here.. https://imgur.com/jfwSkO6
Can confirm on 1.18 pre4, you might want to change the summary to "render distance", because entity distance is a different setting.
MC-237598 was a similar issue, which was fixed a few snaphots ago.
I am unable to reproduce, please provide the exact video settings you are using, and also provide the same video but with the F3 debug screen open,