Low/incorrect chunk load distance on far view setting

Edit: The bug report at https://mojang.atlassian.net/browse/MC-31622 is clearer, and almost certainly the same issue.

In single player, the chunk loading distance appears to be lower than intended. As far as I can tell, they load to the default server distance of 10. This causes the edge of the world to be quite visible, before the fog starts affecting it.

This has been an issue since the LAN update.