game tries to "setBlockAndData(minecraft:torch/0) but it's an invalid state. Defaulting to minecraft:torch[facing=up] instead (minecraft:torch/5)"

This occurs for me too, but it is not restricted to "while creating a world", it occurs regularly, even though it might be related to area generation/traveling on the server, I just saw it in the log.

I have also seen NPC villages with the torches on the black wool lightposts seemingly hovering next to the wool rather than being attached to it.

And that would be the cause of MC-59928. Good find.