Im not sure if this is something that can be fixed in Litematica, or if its something that the Lithium devs have to deal with.
Minecraft version
1.17.1

Mod version and malilib version
OpenJDK 16.0.2.7
Fabric Loader 0.11.6
fabric-api-0.39.1+1.17
litematica-fabric-1.17.1-0.0.0-dev.20210819.233050 (same issue with the older version i was using litematica-fabric-1.17.1-0.0.0-dev.20210713.103711)
lithium-fabric-mc1.17.1-0.7.4 (this issue doesn't happen with lithium-fabric-mc1.17.1-0.7.3)
malilib-fabric-1.17.1-0.10.0-dev.24

Description of the bug
Litematica seems to have a conflict with the newly released version of Lithium (0.7.4). 0.7.3 doesn't seem to have this issue.

All mods in the video were disabled in multimc except for the 4 listed above
Video: https://youtu.be/4_nY8JazoCc

Expected behavior
Changing what layers are rendered should update almost instantly in a normal scenario

To Reproduce
Steps to reproduce the behavior:
install the mod versions listed above
load a schematic
adjust the Render Layers > Layer Range (this possibly also affects all above, all below, and single layer renders)

Additional context
This was tested in singleplayer and on a server with only these 4 mods installed.

Can you try adding mixin.world.inline_height=false to the lithium.properties config file and see if it works?

Can you try adding mixin.world.inline_height=false to the lithium.properties config file and see if it works?

I'm not op but that did fix it.

that does seem to fix it.
but how did you know about this setting since it isn't listed on the lithium config file wiki ?

I am the author of the patch with that setting. Wiki is often outdated.