Additional testing is implicating the northern strip of ungenerated chunks (shown as black area in the screenshot), which span into a partially generated system of ocean ravines which bottom out near bedrock. This means they have lava at the bottom but ocean water directly above them. Something occuring during terrain blending while generating these chunks causes a near-infinite recursion process due to the lava being converted to obsidian and/or cobblestone.
Pre-generating the area entirely in 1.14.4 and then upgrading it to 1.18.1, not allowing this area of ungenerated chunks to be affected in the upper half by terrain blending, ameliorates the issue entirely and everything behaves as expected.
I have confirmed that when terrain blending is allowed to fill in these chunks, particularly chunks 152,79 to 156,79 (in region 4,2), a large amount of water is generated next to the lava. This is visible in the attached MCA Selector shot. Under 1.14 generation, this area would have been filled with lava instead. The area does save successfully, and apparently the scheduled lava-to-obsidian conversion will not try to occur again w/o a block update happening in the area.
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