I think I've got my issue relating to this resolved. And I'm sharing my mitigation actions here, in case they help someone else.
It seems to have been caused by a few issues, but by far the biggest one was just the number of villagers in a relatively small area (thanks to those who also suggested this as a major cause!).
We had about 35 villagers in an X-Z area of about 40 blocks by 30 blocks (they were on multiple Y levels). The other (more minor) issues might include: a) them being confined underground, b) some pathing issues, c) beds being too close together (even though they were still sleeping in them), d) crafting blocks being placed between beds with no blocks separating the blocks from either pillow ends of the beds.
Building anything above this underground compound seemed to really exacerbate the server crashing-and-resetting issues, for some reason.
In the end I went into the server alone and killed about half of them. I had to try this two or three times, as the server kept crashing in the middle of the cull. Thankfully, the last time the server didn't crash.
At that point things seem to have stabilized and the crashing has stopped (two or so hours with no crashes, so fingers crossed!). Still seeing some weird behaviors (the ground becoming transparent down to bedrock, villagers suddenly "hrnning" and moving in unison, some movement lag). But so far the server/world is hanging in there.
We also moved all the villagers to an area next to the underground compound they had been in, and made sure they were on the surface. This might have also helped. They are still breeding like rabbits though. They've gone from about 11 up to 18 or 19 in the space of an hour, even with us not explicitly feeding them and limited beds.
Ultimately, I think the problem is with Realms-hosted worlds not being able to handle concentrated, heavy mobile unit (i.e. villager) behaviors. I'm sure there's a lot of logic and rules associated with villagers and their interactions. And high unit numbers * any kind of memory leak or code inefficiencies running on somewhat constrained CPU and/or memory resources is a recipe for problems. But that is just conjecture on my part.
I just created a new issue for this same problem, and now see this one. So I'm adding my observations, in case my issue gets removed as a duplicate, and in case it helps someone...
In my case I'm on a 10-user subscription Bedrock Realms world, with between 1 and 3 players on concurrently.
I first noticed this problem about 4 days ago. It happened once (booted me and I lost several minutes worth of work). But it didn't happen again.. until tonight. My friend and I were booted 4 times in a row over a 30-45 minute window. Each time all our work was reset (except for a couple of minor things done right after we logged in following the first boot).
For me, it doesn't seem to be tied to significant world changes, doesn't seem to be tied to a specific user logging in, and is occurring when only 2 users are on. There was no traveling between dimensions occurring when this problem occurred. It was happening in a location where there are quite a few villagers (about 35), though I was reducing them in number (killed a few) and it still happened. Also, this villager count was about the same yesterday when this problem was not occurring after a couple of hours of smooth play.
Version of the game I'm using is 1.16. One client is Windows 10, the other is an Xbox.
In total this problem occurred 4 times within the -45 minutes window, and reached a point of making the game unplayable.
We've been trying to disburse the villagers on my world, but they stubbornly refuse to go outside the underground compound they were bred in (even though an open door is right there and we've destroyed most of their beds).
I have checked windows event logs on my machine, it is crashing due to the faulting module ucrtbase.dll in the system32 folder. I have tried uninstalling and reinstalling multiple times to no avail, also reinstalled the Windows c++ redistributables, tried repairing with DISM, still no solution.
I am on a Windows 10 machine.
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