mod list
-fabric-api-0.32.5+1.16
-enhancedblockentities-0.1--1.16.x

--images below-

This has been "fixed" in the last 2 commits to 116_indev, will be available upon next release

This has been fixed in the latest commit for all chest types, but not fixed for signs and beds.

I don't see what the issue is. The particles appear the way they do since they use the vanilla chest textures rather than plank/obsidian textures.
Please clarify within a few days, or the issue will be closed. Thanks!

just wondering if its possible to have the plank/obsidian textures instead of the chest/ender chest texture when using this mod

I don't see what the issue is. The particles appear the way they do since they use the vanilla chest textures rather than plank/obsidian textures.
Please clarify within a few days, or the issue will be closed. Thanks!

What I'm seeing from these pictures is that particles uses the whole texture. Particles from other blocks use just a couple pixels, not the whole texture just downscaled.

The chest block texture is an entity texture, which is 64x64 with all faces unwrapped. Block dust particles use small portions of the provided particle texture as their own texture. As the chest face textures on the chest entity texture take up only a fraction of the texture's area, it appears as if "the entire texture" is being displayed on the particle despite it being normal vanilla behavior.

Technically you can say it's normal behavior, but it still looks weird/bad. Perhaps only use one of the faces for the particles?
At https://vanillatweaks.net/picker/resource-packs/ , under the Fixes tab there is a resource pack called "Proper Break Particles". Perhaps try to emulate the way it looks. It only uses the top face of chests.

I agree it looks bad, the particles aren't square or rectangle anymore and contains too much vertices, making it very unminecrafty. Imo, the baked models particles look better, especially with the fixed vanilla tweaks texture pack Xrey brought up.

#chest actually also governs that texture applied to the actual chest model. Changing it to planks will not work.

This issue can be easily fixed for bells, but for chests (and other blocks with variants), I need to gain a better understanding of what #chest means in models/block. #chest governs the particles for both ender chests and chests, and assigns particles accordingly.