I also am having the same issues as above, game is not unplayable on the Mario Mashup version (Switch).
If I create a brand new map it appears to work alright, but my existing game locks up for ~30 seconds every time the auto save kicks in and it is laggy in between then too. Very frustrating.
I'm not sure what Mojangs history is on fixing bugs like this but I have one very disappointed 6 year old right now (and to be honest a more disappointed adult lol)
I have also restarted my game. Copied the world and tried it (same result). Logged out and in and still have the same issues. I traveled far away from my existing world and also outside of the Mario prebuilt world and it still has the same problems. I'm happy to add any more details that are helpful.
The information is correct, what was wrong about the initial project? I thought I assigned it to MineCraft (Bedrock)? what should it be in?