Sky colors change rapidly when moving at very high y-levels

I could not reproduce this in 1.16.5. I was kicked and received an "Invalid move packet received" (or similar) error when attempting to reproduce in that version.

I am reporting as a private report, in case the method used to reproduce this issue should be kept private (it was given in MC-217427).

The bug

When moving at very high y-levels, the sky colors change rapidly.
Please see the video for more information. If you are sensitive to flashing lights, I would recommend not watching this video.

Video: https://youtu.be/Ykf-N75-q_Y

How to reproduce

1. Summon a pig
2. Put a saddle on the pig
3. Start riding the pig
4. Use the following command (note that the y-value given is completely random, and can be less than this):

   /data merge entity @e[type=pig,limit=1,sort=nearest] {Pos:[0.0,17498005798264095394980017816940970922825355447145699491406164851279623993595007385788105416184430592.0,0.0]}

5. Dismount the pig
6. Move around (not just your camera)
   The sky color flashes rapidly