I believe this also will translate to other modded dimensions, but discovered going into the Twilight Forest Dimension. Game crashes with the main hint being SurfaceChestFeature.
Here is the main wrench being thrown in the game to cause the crash

java.lang.NullPointerException: Feature placement
at com.someguyssoftware.treasure2.world.gen.feature.SurfaceChestFeature.place(SurfaceChestFeature.java:77) ~[?:mc1.16.5-f36.2.34-v2.2.0] {re:classloading}
at com.someguyssoftware.treasure2.world.gen.feature.SurfaceChestFeature.func_241855_a(SurfaceChestFeature.java:50) ~[?:mc1.16.5-f36.2.34-v2.2.0] {re:classloading}
at net.minecraft.world.gen.feature.ConfiguredFeature.func_242765_a(SourceFile:55) ~[?:?] {re:mixin,re:classloading,pl:mixin:APP:blue_skies.mixins.json:ConfiguredFeatureMixin,pl:mixin:A}
at net.minecraft.world.biome.Biome.func_242427_a(Biome.java:254) ~[?:?] {re:mixin,pl:accesstransformer:B,xf:fml:sereneseasons:temperature_transformer,re:computing_frames,pl:accesstransformer:B,xf:fml:sereneseasons:temperature_transformer,re:classloading,pl:accesstransformer:B,xf:fml:sereneseasons:temperature_transformer,pl:mixin:APP:mixins.environs.json:MixinBiome,pl:mixin:APP:blue_skies.mixins.json:BiomeMixin,pl:mixin:APP:ftbchunks-common.mixins.json:BiomeMixin,pl:mixin:A}
at net.minecraft.world.gen.ChunkGenerator.func_230351_a_(SourceFile:220) ~[?:?] {re:mixin,re:computing_frames,re:classloading,pl:mixin:APP:yungsapi.mixins.json:ChunkGeneratorAccessor,pl:mixin:APP:repurposed_structures.mixins.json:world.ChunkGeneratorAccessor,pl:mixin:APP:cavebiomeapi.mixins.json:ChunkGeneratorMixin,pl:mixin:A}
at net.minecraft.world.chunk.ChunkStatus.func_222605_b(ChunkStatus.java:77) ~[?:?] {re:classloading,pl:accesstransformer:B}
at net.minecraft.world.chunk.ChunkStatus$$Lambda$2415/1622013365.doWork(Unknown Source) ~[?:?] {}
at net.minecraft.world.chunk.ChunkStatus.func_223198_a(ChunkStatus.java:198) ~[?:?] {re:classloading,pl:accesstransformer:B}
at net.minecraft.world.server.ChunkManager.lambda$null$18(ChunkManager.java:675) ~[?:?] {re:mixin,pl:accesstransformer:B,xf:OptiFine:default,re:classloading,pl:accesstransformer:B,xf:OptiFine:default,pl:mixin:A}
at net.minecraft.world.server.ChunkManager$$Lambda$46868/560265627.apply(Unknown Source) ~[?:?] {}
at com.mojang.datafixers.util.Either$Left.map(Either.java:38) ~[datafixerupper-4.0.26.jar:?] {re:classloading,re:classloading,re:classloading,re:classloading}
at net.minecraft.world.server.ChunkManager.lambda$chunkGenerate$20(ChunkManager.java:673) ~[?:?] {re:mixin,pl:accesstransformer:B,xf:OptiFine:default,re:classloading,pl:accesstransformer:B,xf:OptiFine:default,pl:mixin:A}
at net.minecraft.world.server.ChunkManager$$Lambda$46865/1411127008.apply(Unknown Source) ~[?:?] {}
at java.util.concurrent.CompletableFuture.uniCompose(CompletableFuture.java:952) ~[?:1.8.0_51] {}
at java.util.concurrent.CompletableFuture$UniCompose.tryFire(CompletableFuture.java:926) ~[?:1.8.0_51] {}
at java.util.concurrent.CompletableFuture$Completion.run(CompletableFuture.java:442) ~[?:1.8.0_51] {}
at net.minecraft.world.chunk.ChunkTaskPriorityQueueSorter.func_219083_b(SourceFile:58) ~[?:?] {re:classloading}
at net.minecraft.world.chunk.ChunkTaskPriorityQueueSorter$$Lambda$46746/611880789.run(Unknown Source) ~[?:?] {}
at net.minecraft.util.concurrent.DelegatedTaskExecutor.func_213148_e(SourceFile:94) ~[?:?] {re:classloading}
at net.minecraft.util.concurrent.DelegatedTaskExecutor.func_213145_a(SourceFile:137) ~[?:?] {re:classloading}
at net.minecraft.util.concurrent.DelegatedTaskExecutor.run(SourceFile:105) ~[?:?] {re:classloading}
at java.util.concurrent.ForkJoinTask$RunnableExecuteAction.exec(ForkJoinTask.java:1402) ~[?:1.8.0_51] {}
at java.util.concurrent.ForkJoinTask.doExec(ForkJoinTask.java:289) ~[?:1.8.0_51] {}
at java.util.concurrent.ForkJoinPool$WorkQueue.runTask(ForkJoinPool.java:1056) ~[?:1.8.0_51] {}
at java.util.concurrent.ForkJoinPool.runWorker(ForkJoinPool.java:1689) ~[?:1.8.0_51] {re:computing_frames}
at java.util.concurrent.ForkJoinWorkerThread.run(ForkJoinWorkerThread.java:157) ~[?:1.8.0_51] {}

I'm assuming your mod is the main cause for this crash.

OH yea the version being used is Treasure2-mc1.16.5-f36.2.34-v2.2.0.jar

Downgrading to previous versions seems to help stop the crash

Crashes stop but game freezes and does not seem to want to run, no crash will be produced, and game will keep running but portal to get back from Twilight to Overworld still isn't working, breaking blocks do not cause anything to drop, checking the live outlog still put your mod for the running issue still. I have removed twilight forest and the twilight forest addon for your mod at the meantime.

I'm getting a similar crash with any dimensional mods that I try to use, here's my crash log! The best fix I can think of is getting a list of all the dimensional biomes that are added and blacklist them but I haven't tried it yet 😭
crash-2022-12-16_06.50.31-server.txt

Oh yay! Did it actually resolve this though?

I've had the same issue. Downgrading to Treasure2-mc1.16.5-f36.2.0-v1.7.3 seems to do the trick. My twilightforest version is 1.16.5-4.0.870 btw. Not sure that downgrading to an older version of Treasure2 will fix other dimensions, but twilightforest works.

I added it back in by restoring the files from the bin and it started working with no issues with any dimension mods. I only did it because I hated your mod not being in it which I also added Twilight Forest mod as well, and I have had issues with the mods interacting yet. I don't know what caused it to suddenly work when it wasn't, but I don't think I haven't added anything else. Unless I installed a mod that somehow patches incompatibilities at launch, but I can't remember. I'll have to check.

Fixed in version 2.3.0