1.16 Sunken Ship Chest Crash

The back room on every sunken ship (i.e. the room with the door) has a chest which generates with a block of flowing water inside it. Attempting to break or open the chest without using a sponge crashes the game, whether on singleplayer or multiplayer.

This issue has nothing to do with the /locate function, only world generation.

Attached are log files of several times the server has crashed. The server is completely vanilla.