Java Server 1.18 Lag and Crash issues (even on LAN)

My wife and I host a Java server for the two of us on LAN, and we have been having very odd issues, including lags disconnects and a crash.

Attached the crash report from the one crash we did have.  Client came back with a stack overflow error, but the crash report does not have that.

 

We are also getting massive rubber-banding on LAN which has never happened in 1.17.1 or below.

<wife> moved too quickly! -7.066052129925339,0.0,7.171454097999691

And all she was doing was walking around.