when using extended world heights the game is bit jumpy no idea why.
i have added the pack i made to test the min needed to remake the bug
it is saying this in log Can't keep up! Is the server overloaded? Running 2008ms or 40 ticks behind
the time and ticks vary
the pig picture is a device to see the lag staying still and the pig bit is me just messing around its not needed
the clock and piston stops when the game lags
do it now in no datapacks cant previde metrics as it cant work due to bug with f3
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Can you try with a more recent version of Java? I believe the java 1.8 garbage collection is relatively slow in comparison to newer versions. You can read a bit more in this reddit post

Still does it on Java 16 not tried the settings for the jvm

It made it worse

@unknown, can this still be reproduced in 1.18-pre5 or later?

Not seen it since 1.17

Thanks. Resolving as CR for now.
I honestly hope Mojang uses their extended 1.18 deadline to revamp chunk loading, so it includes vertical chunk loading. I'd assume the lack of that is the main issue as the game now needs to deal with basically an extra half a world added onto itself.