When using a datapack with custom biomes, adding one or more of those biomes to a location predicate will cause the predicate to be unusable. It also prints an error ("Couldn't parse loot table ultimate_survival:biome/mystical_reef") into the log when doing so, but it's not fatal. Also, yes, the predicate is located in the namespace's predicates folder.
Environment
Lenovo T430, Windows 10, Java v8.261
The included "Worldgen" folder is located within the "minecraft" namespace, before anyone asks.