This is working as intended
This is also affecting me in 1.21.4 and 1.21.5. On previous versions I just kept falling until chunks started generating but now I also take damage and lose all my items in the void.
Actually, after reading it again, it seems that MC-280360is probably describing the exact same issue.
Interestingly the incorrect generation of poppies, dandelions etc.(not tulips) was recently deliberately added to bedrock edition and mentioned in the changelog. Perhaps this bug was misinterpreted as a feature? I don’t this this change to flower generation was intentional on Java at least, since it wasn’t mentioned at all during development in the changelogs, plus it is unbalanced.
Can confirm on 25w32a