The Chat Up! mod, by gembon (Creator of the Carpet mod) is a must have.

All it does is move the chat up by 10 pixels so it won't overlap with the amour stat on the hotbar, improving the visibility of chat. This is extremely helpful for users that make their chat transparent.

Without the mod:

With the mod:

P.S. It's not tagged as being compatible with 1.18 on Curse, but it is.

Also can use AdvancedChatHUD by DarkKronicle to fix this problem, and this mod can provide more features in the chat hud like chat heads and etc. If this mod is added to the modpack, the mod Chat Heads can be removed.

I like @spaceskynet 's solution if it works as well as the current Chat Heads mod and adds addtl. features