edit; wrong crash log, see below
Reverting to 7.0.1 works

Seems like it's an issue with the smooth swapping mod: Schauweg/Smooth-Swapping#57

oops, I posted the wrong crash log
crash-2023-06-17_19.40.33-client.txt
this is the right one

That's an issue with slight GUI modifications trying to change how the modmenu renders, which has changed.

You can see which mod causes the error in the traceback:
Caused by: org.spongepowered.asm.mixin.throwables.MixinApplyError: Mixin [#slight-gui-modifications:slight-gui-modifications.mixins.json:modmenu.MixinModsScreen from mod slight-gui-modifications]

Yep, and it looks like they already know and fixed it: shedaniel/slight-gui-modifications#96