[MC-218548] Terrain doesn't render if player is above world height in 32 tall world

If the player is above world height in a 32 block tall world, new terrain stops rendering. Like this:

This bug seems to only happen on a world thats 32 blocks tall.

Load custom world 21w08b_32_norender.json
Go above y=32, go into a place new terrain would generate and look horizontal
Terrain doesn't render
Look down at new terrain
Terrain renders
Go below y=32
Terrain renders