Superflatland world creation bug

When creating a superflatland world with default presets the game will freeze at 'Building Terrain' or 'Converting World'. Sometimes it will then show an error report screen stating that the game has crashed due to a bug or insufficient memory. However with 8GB of RAM allocated to the game, it can't be insufficient memory.

A skin is installed however, the game still crashes in it's default skin; no mods are installed.