This bug report involves the BDS software and the 1.16.100 and 1.16.200 update and hotfix.

It has been reported in other areas the lag from flying with Elytra was resolved in the 1.16.200 hotfix however on our BDS server the lag is still there and is visible in my Control panel's CPU usage. There is also considerable lag when anyone runs through the Nether or mines. The lag is shown as very aggressive lag spikes in my CPU's control panel. Almost undulating in nature, although not uniform. Logging in to the server causes a lag spike to 1000% nearly stopping all player activity for those who are in game. 

The CPU is a 10th Gen i9. We're the only community using the hardware so there is no issue due to client side crowding of hardware. Even in a clean world, with no builds, the lag is still there. 

The world does not generate fast enough causing players to crash into things. The lag spikes cause players to experience severe block lag, delayed damage from mobs, delayed damage to mobs, etc. when any other player is flying with Elytra. 

The game also has serious lag spikes when players run through the Nether even when they don't interact with other entities. 

Prior to the 1.16.100 update, we did not experience any lag unless we had 6-8 players on at the same time. Our CPU typically ran below 100%  even with 2-4 players on. Since the update our CPU can hit 100% usage with just one player on, depending on what builds they have in their area. 

Some texture packs which were utilized prior to the update, can not run optimally since the update, IE. Vanilla BDCraft ran at 128x prior to the update for most players with no issues, now players have to turn it down to 64x due to frame drops causing the game to be unplayable. 

Overall, there seems to be a multitude of issues regarding lag which started after the 1.16.100 update and were not resolved in the 1.16.200 hotfix. The game does not play as smoothly as it did and the stress on the server hardware is out of proportion to the size of the world, number of players and what's going on in the world. Even reducing render distance, etc seems to have no impact on the lag spikes.