High render distance causes long Nether loading

With render distance set to 24, loading into the nether takes 60-70 seconds. Turning render distance down to 10-12 reduces load time to ~10 seconds.

In addition, with higher render distance, nether has trouble loading certain chunks (see attached screenshots). This loading delay/hitching can last over a minute. If you're on a minecart when the hitching occurs, the cart stops dead and does not resume moving when chunks finally load.

I understand that higher render distance can cause performance issues, however, this was not an issue before the last update or possibly the one before that (problem first appeared in February, not sure what version).

All players on my server are experiencing this problem, regardless of platform (Windows and iOS). Issue occurs with RTX on or off. Issue does not occur in offline version of world, server (BDS) only.