It spawns in mountains when ocean is selected in single biome option.
I am very uncomfortable with this situation, for example, I want to survive in the ocean, but this situation prevents it, I would be very happy if it is resolved MOJANG I love you excellent team!
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We're tracking this issue in MC-236884, so this ticket is being resolved and linked as a duplicate.
That ticket has already been resolved as working as intended, which means this is not considered a bug and won't be fixed. Please do not leave a comment on the linked ticket.
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In 1.18 the biome no longer influences the terrain shape, only the decoration of the terrain (trees etc).
If you want an ocean-only world where there's no land whatsoever, consider creating a custom world data pack for that.