When using both this mod and Distant Horizons, generating fake chunks with "Enable Distant Generation = true" and "Light Generation Mode = fancy" results in the generated fake chunks black. Switching "Light Generation Mode = fast" uses the Distant Horizons mod's own light engine and fixes the issue but uses a lower quality light engine. As phosphor replaces the Minecraft light engine, When using the fancy option, it uses phosphor's engine causing the black fake chunks

Closing this as it is on Distant Horizon's end to fix. For reference, the issue is tracked in https://gitlab.com/jeseibel/minecraft-lod-mod/-/issues/308.
Let me know in case any adjustments from our side are needed.

Phosphor adds logic to the FEATURES chunk generation stage in MixinChunkStatus. As far as I can tell, Distant Horizons overrides that part of MC code in StepFeatures, rendering Phosphor's Mixin ineffective. This needs to be addressed in Distant Horizons by calling Phosphor's ServerLightingProvider.setupLightmaps(Chunk chunk) hook.