So What I did was:

had 1 world I deleted that world. It put me in the new world section automatically (like its meant to) then made the world with no setting changes besides game mode creative, and difficulty peaceful. then hit create. it made it fine but WHAT happened! In the spot where my hand was (Bottom Right Corner) it was the item I was holding before I deleted the world before (The deleted one). I know thus used to occur in alpha but never before 1.16.2 (except before alpha) WEIRD!