Chests at the bottom of a Superflat world fail to render or render partially

Chests (or other block entities) placed at the absolute bottom of a Superflat world do not render. However, placing a block on top of the chest causes a small portion of the chest to become visible.

Steps to reproduce the issue:

1. Create a Superflat world.

2. Go to the lowest Y-level (the absolute bottom of the world).

3. Place a chest at the bottom layer.

4. Look at the chest (it is completely invisible).

5. Place any block directly on top of the chest.

Expected result:
The chest should render normally and be fully visible when placed at the bottom of the world, just like in any other location.

Actual result:
The chest is completely invisible. When a block is placed above it, only a small part (a tiny sliver) of the chest renders.