Items not dropping and chunks not saving [MC1.20.1] [FABRIC-0.16.9]

[B1adereaper]

So suddenly, all of my stuff on my server has reset and it just gets glitchier and glitchier, this is a small multiplayer server with only a couple players I'll include any logs in the post, also check here for a video showing the issues.
I have also, following this issue tried to reinstall fabric on this server but nothing changed..
I hope to resolve this bug soon.

[B1adereaper]

To follow up I did testing with another friend and he was unable to move at all but could only get around via teleporting.
I even created another fresh world in the server and the same issues still carried over but I was able to confirm it's an entity data error cause every entity I spawned was at default value, tropical fish? all white small fish, Ice and fire Ice dragon? always spawned as a baby fire dragon but could use the adult ice dragon breath. Even when summoning with custom values like the colour it still remained red...

[github-actions]

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