Sorry, it took me a awhile to know what causes this bug, and after playing around with the setting, I found out that the frame rate limiter is the one that causes the bug.
The device I'm using is Poco X3 Pro (6GB RAM, 128GB ROM, Snapdragon 860). I did change some settings.
Sensitivity: 30
Button Size: 100
Destroy Block (vibrate): off
This however doesn't effect the sneak button for the new touch control, only the classic control.
I also tried to replicate this bug on Redmi 9, but the control there seems responsive. So this bug probably only affecting certain device like the Poco X3 Pro.
Another potential workaround for mobile (possibly only Android, but if anyone could try on IOS too to see the result):
1. Open the world
2. When the loading stuck, quit the game/open recent app tab (but do not remove Minecraft from recent app)
3. Open Minecraft again, and you should be in the world again