jmp
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I don't think MC-243471 is the same issue. That report details memory usage exceeding the allocated amount, which doesn't happen in the case of this issue, where the heap fills up to the allocated size, and then the server crashes. This issue also does not entail a system wide freeze like the other issue does, and is happening for the vanilla overworld dimension, contrary to the comment from yitzy299 on the other issue.
Can confirm that yes, this does still happen in 1.16.2. The fix mentioned by Insane96MCP works perfectly (moving the call to update the boss bar outside the if/else block). I recently fixed this bug in Paper with the following patch file (2 line diff): https://github.com/PaperMC/Paper/commit/c8542f236568b6e168f59d79b02d62d3fb11f690
I've generated and attached a world as requested: https://www.mediafire.com/file/l1jvhcj9w2g92o2/world.zip/file (uploaded to fileshare site as it is 100mb), but it should be noted that there is nothing special whatsoever about this world - it is a standard 1.17.1 world generated from a random seed. The issue is reproducible using any 1.17.1 (and possibly prior) world, using my specific world is not needed.
As far as whether this happens in a Windows environment, I haven't tested it myself as I don't normally use Windows, but I don't think any part of this issue is platform-specific, I would expect the same results across macOS, Linux, BSD, Windows, etc.