this is not a client issue as my friend is having the same problem
Chunks arent loading as it should be, one it does I spawned in a different location once logged in into the server, sometimes underground sometimes in the void. But it teleports me to where I should be but I cant do anything but chat. The server's loading the chat but not the block breaking nor movement (most of the times). I've tried using 9GB of ram to test the server so it's not a hardware issue and the issue persists. This was the error that appeared after it kicks me out :
internal exception java.net.socketexception connection reset
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Since you mentioned that this happened in 1.16.5, would MC-166508 happen to describe your issue?
I believe not, I've tested some things again and breaking blocks doesnt work it doesnt drop anything but after I log out and reconnect the block drops. Eating or doing anything in that matter also updates after I log back in. The chat seems to be in a perfect condition tho, just not showing up on the client side until I get teleported to the original last logged out location it appeared but the chat after that doesnt.
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What are your hardware specs? Can you check if the same issue happens in 1.16.5 as well?