Chiseling causes rendering issue with the placed blocks. Log contains warning about empty NBT in rendering thread ([06:18:35] [Render thread/WARN]: Empty NBT tag received, ignoring.), but I assume it might be unrelated to the C&B, because I was unable to reproduce this warning during interaction with blocks.

I would prefer to not update to 1.19.3, due to having relatively large custom modpack.

I have the same issue on 1.19.2 Fabric. Chisels & Bits is on the latest version (1.3.126).

Removing Sodium seems to fix the issue for me, making blocks visible again.

I tried playing around with the config, but to no avail. Is there some setting I missed?

Installing Indium solved the issue. Thanks

Install indium