Tried adding OptiFine_1.18.2_HD_U_H7.jar to the mods folder and crashes.

Optifine is incompatible with the mods we have, and we will not be making changes to support it, use Rubidium instead.
Pinned post from the ATM Discord below

Rubidium is the alternative to Optifine.

• https://www.curseforge.com/minecraft/mc-mods/rubidium/files/3749094 (1.18.2)

Oculus (optional) for shaders.

• https://www.curseforge.com/minecraft/mc-mods/oculus/files/3821406 (Requires Rubidium)(1.18.2)

Optional:
If you use Oculus, some textures may render invisible. It’s recommended that you turn off flywheel shaders in-game as they’re problematic when used together. Via /flywheel backend off. The setting below may also fix other issues if flywheel doesn’t help, however with IE some blocks will remain invisible. After running the game once with Rubidium and Oculus installed, there will be a config file in your config folder rubidium-mixins.properties. Open it and make a new uncommented line with mixin.features.chunk_rendering=false
And if you have further issues with Immersive Engineering wires not rendering, use Rubie https://github.com/malte0811/rubie/releases

Disclaimer(s):

• ATM don’t give support for graphical mods (including shaders).
• Oculus has minor invisible texture issues, mostly with Immersive Engineering.
• Rubidium & Oculus is not affiliated with ATM.
• Support or issues, direct them to Oculus or Rubidium Github Issues.

Thank you for your help!