The bug:

Starting with the 1.18 snapshots, clouds were raised to y=192, which introduced an issue where clouds fail to render seamlessly at certain distances. This is not related to the general rendering distance limitations that apply to all objects in the game but specifically concerns clouds not being fully occluded by fog before they disappear.

Observed behavior:

Clouds stop rendering abruptly before the fog starts obscuring them, resulting in visible popping or noticeable transitions when clouds load or unload at the edge of the render distance.

Expected behavior:

Clouds should integrate smoothly with the fog, rendering fully until they are 100% hidden by fog at the distance limit, ensuring seamless transitions and avoiding any abrupt visual changes.