Hello I'm sorry that this update is late however Yes this is still an issue in the most recent hotfix (1.16.210) and my main survival world and my Survival / Creative mode world.
You will likely be able to reproduce this issue by starting up a world and being in an one area for lots of time flatten the area out and light it up then the issue will be clear also from further testing on my Creative / Survival world it appears to be as if this bug is not just for flat areas but for just about all areas, also the lag does not just appear to come from torches it also comes from just about all blocks that admit light including Beacons and sea lanterns.
To be clear I am asking that this bug gets patched so that way I can enjoy playing Minecraft Bedrock Edition on my Xbox one S without Having to worry about lag which used to be the case.
I have already tried restarting and reinstalling minecraft
For me it has been animating in the inventory and not on the hotbar.