I don't have another legacy console edition world to test on. I would have to create a new one and go around exploring as well as buying a realm subscription to be able to move the world over to W10 and test in the 1.18 beta.
Also, I don't know if this same issue would appear in a world originally created in Bedrock (non-legacy console edition) as I don't have a world as big as my legacy console edition world to test it on.
Can confirm that bug is fixed in the 1.18.0.22 Beta, at least my world (the one attached) doesn't have this issue anymore.