Not working on this version the health indication is borked.
[16:31:49] [Worker-Main-4/ERROR]: Couldn't load tag sourcecraft.5:passable as it is missing following references: minecraft:grass (from file/Health Indications v2.3 [1.20+] (Resourcepack Options Enabled).zip)

The error is irrelevant to the issue. I believe that the resourcepack is outdated.

I had a feeling that might be it.
Any chance for a fix?

Yea I'll try to get around to it, but I have to look into the changes to see what needs to be fixed.

Not working on this version the health indication is borked. [16:31:49] [Worker-Main-4/ERROR]: Couldn't load tag sourcecraft.5:passable as it is missing following references: minecraft:grass (from file/Health Indications v2.3 [1.20+] (Resourcepack Options Enabled).zip)

Are you sure that you put the same file in both your datapack and resourcepack folders, and enabled the resourcepack in your settings? I believe the healthbar textures should still be working.