I am using:
Fabric 1.17.1
with these mods:

As soon as i turn on Moveable tile entities i instantly begin to dive down to 1 FPS from 200+ FPS as long as im looking in the direction of the tile entities(Sodium rendering option).

I found the solution the Sodium mods causes it.
I was thinking what could cause it and i thought that it was for sure something that changes or alters the rendering so i turned off iris3 and sodium and now it works.

Would be helpful if you narrowed down the mod combination that causes it, otherwise - don't turn that on