When updating to versions past 1.20.80, blocks in item form in old worlds using numerical IDs are not upgraded correctly

When upgrading worlds that were using numerical IDs prior to version 1.5.0, block-type items in containers like chests or item frames would disappear{}. This did not occur in version 1.19.70, so the bug might have been introduced sometime after 1.19.70 and before 1.20.80.
The old world referred to here refers to worlds with an older version, not the world type (like Superflat, etc.)

Steps to reproduce:

1. Download, import and open

1. in a version prior to 1.21.10.22

2. Import and open the world in a version after 1.21.10.22

Observed result:
In versions prior to 1.21.10.22, most of the chest's contents have disappeared.
In versions after and including 1.21.10.22, the different plank types have all turned into oak planks; the same goes for fences.

Expected result:
The old items that used to use numerical IDs are properly converted into their respective namespaced IDs.

Notes:
This bug was partially fixed in 1.21.10.22, the ID would be updated correctly to the new version of the block, but the "damage" value was not updated properly. Due to this, blocks cannot be placed properly.

As attached: