I was able to use version 5.7.0 without any noticeable lag, but when I use version 5.8.0 with the same radius (24 blocks), my game lags immensely. I made a quick test - I activated LightOverlay and flew with it activated in spectator mode through the nether (I only used FabricAPI, Arcitectury, ClothConfig and ModMenu for the test).
With version 5.7.0 I got around 40 fps with short lags sometimes.
With version 5.8.0 I got 5 fps at best, the was lagging constantly and often times it dropped to 1 fps.

Just to be sure, you have cache mode on right

Thanks, activating caching fixed it. But why does it lag in 5.8.0 without caching when it didn't lag in 5.7.0 without caching?

Can you actually confirm that without caching, 5.7.0 is not laggy?

Yes just tested it again. In 5.7.0 I can even turn the radius up to 32 blocks without caching and it doesn't lag

Thanks for confirming, there are certainly a few changes I did in 5.8.0 that have affected performance.