Changing Render Distance on Singleplayer in the Nether makes world freeze.

When attempting to change my render distance in the Nether, the world stops being updated. Mobs freeze, blocks break but items don't drop, can't interact with tile entities like chests, etc.

Steps to Reproduce:

1. Create a new world (I was using Custom World Type)
2. Go to the Nether
3. Try to change the render distance (higher or lower).
4. World will now freeze.

Notes:
Simply reloading the world does not fix the issue, as the world will freeze on Downloading Terrain, and will eventually crash due to not having enough memory. Restarting the game and the launcher also does not fix the issue.

To fix the issue, you must join a server and change your render distance. This resolves the issue.

This issue does not occur on servers, only on local singleplayer.

I was only able to reproduce the issue in the Nether, does not occur in the Overworld and did not test The End.