'fell out of the world' due to lag

Expected behavior

Laggy player joins, they keep on falling (in the void) till their game caught up and get teleported to their actual location.

Observed/Actual behavior

Laggy player joins, they keep on falling and eventually get killed with the message "fell out of the world".

Steps/models to reproduce

Have a very laggy player join, sit back and watch.
Sometimes it can take a few disconnects for it to kill them with the message "fell out of the world".

Plugin and Datapack List

Bukkit Plugins:

• AuraSkills, Bolt, ChestShop, ChestShopNotifier, Citizens, CleanroomGenerator, CMI, CMILib, CommandPanels, CoreProtect, DiscordSRV, DiscordSRV-Staff-Chat, EndPortalEntityExitRelocate, ExtraContexts, FarmControl, floodgate, Geyser-Spigot, GrimAC, Jobs, KeepChunks, LuckPerms, MobArena, Multiverse-Core, Multiverse-Inventories, Multiverse-NetherPortals, Parkour, PlaceholderAPI, RHLeafDecay, Vault, Votifier, VotingPlugin, WorldBorder, WorldEdit, WorldGuard

Paper version

paper-1.21.5-110

Other

In the past they just kept on falling but since 1.21.x they somehow die.
There's a bug report for Minecraft that might be related: https://bugs.mojang.com/browse/MC/issues/MC-278987
On discord mbax asked for a spark report: https://spark.lucko.me/9Xtv47XGaU

Start by reproducing the falling behavior with a very laggy player on paper-1.21.5-110, then compare the result with Mojang issue MC-278987. The linked Spark report may help investigate the lag conditions; done means the player is teleported to their actual location instead of dying with "fell out of the world".