With Timings, I tracked that BlockPhysicsEvent consumes a lot of server performance.
Here are the timings paste: https://timings.aikar.co/?id=4d0be98dc9c54b108e2def9bc2f55639#timings

Same problem for me

Are there any things to disable in the configuration to reduce the use of this event?

Recently, a player spilled a lot of water, which created incredible lags and TPS dropped to 4-10. Timings showed that Water occupied 200% of tick of which 113% took MobHunting (BlockPhysicsEvent). I removed the water and the lags disappeared, but still sometimes BlockPhysicsEvent creates lags.

timings: https://timings.aikar.co/?id=fd21eebdae834f749f9336812ab9a845

Here are some more lags from this: