It seems when I enter a chunk seen in the pictures the environment will disappear behind me. It doesn't seem to be related to any video settings. I have been able to reproduce it many times in this one location. But i have not been able to reproduce it on other chunk boundaries.
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It seems that it can be reproduced in multiple locations. what I've noticed is when you can see into the next chunk after the one you are entering the area behind you does not disappear. See new image (not wearing iron pants) shown bug in different location.