block updates for carpenter blocks propagate infinitely if formed into a circle or connected shaped, due to it not respecting the initial propegator block. So it just loops infinitly trying to finish the update cycle. This is causing tps issues.

Not sure which update you're talking about. onNeighborBlockChange is the only one I could think of, but it won't loop. Any other clues?

I take it there are no clues pointing to this being the issue. The only TPS issues you'll encounter with this mod is if chunks are constantly updating due to wire state changes, certain mod blocks, etc.