I don't know if it's a bug or intentional, but apparently lavafalls can generate in the deep frozen ocean (minecraft:deep_frozen_ocean).
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Duplicate of MC-239397
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We're tracking this issue in MC-239397, so this ticket is being resolved and linked as a duplicate.
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This was supposed the be fixed on 1.18 Pre-Release 2. Was this part of the world generated before you upgraded you're world to 1.18 Pre-Release 2?
(I'm presuming that your world was created before 1.18 Pre-Release 2)