This exact thing just happened to me (villagers and mobs are moving very, very slowly in tiny, jerky movements) and I can't go to sleep and blocks I destrot take about a minute to enter my hotbar (Minecraft preview 1.20.30.20), need a fix, I've destroyed every workstation in my village, however, the issue persists
After destroying all the workstations and some waiting, my villagers started moving again. The village is still abit buggy, however, it's mostly gone back to how it was before and it didn't take away all my villager's jobs/levels (around 100 or so villagers in the village)