So I do not want the player to be able to pick up villagers, so I changed the "maxEntityHeight" option to 1.6... That did not work. So I made it 0.4 and that also did not work. It clearly ignores this option

Version of Minecraft, Carry On, Forge/Fabric

Forge 1.18.2

Works for me. Are you sure you're editing the right config (i.e. the one in the world's severconfig folder)