Installed Minecraft server 1.17, generated world and started playing.
Upon joining the server there is no world, all I can see is a black horizon, a sun and clouds.
Checking F3 also shows that I am freefalling.
Tried copying the world folder to my Singleplayer mode and that runs fine.
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Thank you for reporting. I am having this issue as well. Singleplayer works fine, but when I try to join my son’s LAN, I experience your exact screenshot.