After dying, when clicking respawn the game crashes instantly:

• Crashy with mods
• Crash report with mods
• Crashy vanilla
• Crash report vanilla

When re-joining, the chunks around the grave don't render anymore

• Render error with mods
• Render error vanilla

Chunks not rendering:
It looks the exact same in vanilla
Modlist Server:

I also tried to switch to a different graveStyle and to turn off all GUI elements, my config file looks like this.

Does it happen when you remove lithium?

No, with lithium removed serverside, everything seems to work as expected.
Are there any specific lithium configurations that I could turn off to resolve this?

Looking that there is no official lithium, I would suggest you to wait for it to limit any issues

That is probably true
I know took the time to go through the config anyways and with mixin.chunk.palette=false and everything else turned on everything now works flawlessly.
Thanks