World Becomes Laggy After 1.21.90 Update Even with Vibrant Visuals Turned Off

After updating to version 1.21.90 (Chase the Skies), my existing world became extremely laggy and slow, even though Vibrant Visuals is turned off. The game was smooth before the update.

This affects:

Walking or moving

Opening chests or inventories

Interacting with mobs

Block breaking delay

Redstone lag

Crops harvesting

This only started immediately after updating to 1.21.90.