Client lag on specific blocks due to too many entities in view, but none are visible

Hi! i have a problem where in a small area of like 5x5 blocks, many players start lagging. I think its an issue with entities in view due to the GPU usage and the amount of them shown in F3. Problem is they are all invisible and cannot be seen with mods like true sight either. Any idea of what it could be and solutions? Thanks!
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