When player travels through nether portal from nether side, which (after accounting for 8x nether distance) is outside the world border in overworld, the game will fail to create the nether portal in overworld, and logs "Unable to create a portal, likely target out of worldborder" in the console.

This appears to occur when the target location in the overworld is non-solid blocks. e.g: water or air.
Because of this, the bug does not occur at all coordinates, only the ones where the destination is a non-solid block. To replicate the issue, you can use my seed -7758649986327837072 and portal coordinates roughly 12550699, 71, 12550422 (nether side).

Steps to reproduce

Create a world with seed -7758649986327837072.

/execute in minecraft:the_nether run tp 12550699 71 12550422

/setblock 12550699 71 12550422 minecraft:nether_portal

Enter the portal.

Observed results:
In 1.20.6:
The game will freeze and put you in the void without generating chunks.
In 24w20a:
The game will not send you to the overworld.

Expected results:
The game sends you to the overworld and generates a proper portal.