When I opened my 1.17 world in 1.18, I spawned into old chunks and there was next to no lag. But, when I tried to enter new chunks the framerate dropped massively and no amount of setting changes could fix it. Attached is an image of me in newly generated chunks.
Just looking at your F3 screen, your memory is almost completely used up, so assigning more could probably help. If the issue persists, please attach a profiling report by pressing
F3+L
.