After upgrading my 1.16.5 world to 1.17, every time I broke a Crafting Table the game would enter a "Timed Out" state and thousands of entities would continuously spawn, causing the game to lag out.
A video documenting the bug.
(At the end of the video, trying to quit the world would make the game to freeze up.)
Will you attach a crash report. If none were generated, manually cause a crash in your world by holding f3+c for 10 seconds.