RaboY

The lag is being caused by pretty much all entities when they're targeting or being targeted, although villagers are the most prominent cause.

There wasn't an issue before 1.20.30 so this is definitely new and everybody has the same problem

Same here, I thought I was crazy lol

No, it still occurs even when fancy graphics is off. In fact, it sill persists even when all graphic options are turned off

Same here. Especially when mobs are actively attacking or being attacked or damaged.