I created a new world, and when I spawned, everything was normal. Then, I set it to 16 chunks and then my world's chunks got corrupted.
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I'm having the same issue, except that 16 is ok for me. Anything above that and it creates an epileptic nightmare of flashing chunks and deformed mob/player models. Will try and upload a video to show exactly how bad it is. And it seems that the closer I get to 32, the worse it gets.

Duplicate of MC-62958