It seems like Minecraft freezes and lags every few seconds or so. It is like a periodic pattern. I never had issues as bad as before this update. (I am not playing multiplayer)

You could be doing literally any task, and the game will suddenly stop and lag for a few seconds. It is definitely not my wireless network, as this only happened when the 1.16.101 hotfix update occurred. 

When the game is lagging, you can still move just fine. But all the other mobs on the screen freeze for a few seconds. All breakable textures don't show breaking animations when you try to hit them, and all sounds are delayed. Droppable items can't be picked up during the lag, and sometimes results in mobs becoming invisible/invincible. You also cannot enter any inventory/crafting/chest menus of any kind. 

In addition to everything else stated above, the game will sometimes show the "load" bar when you try to do something as simple as opening a chest, checking furnaces, checking Villager trades...etc. Anything you can think of that requires bringing up a menu of some sort, it has the possibility of showing the "loading" bar for extremely extended periods of time. 

This is completely unacceptable. Minecraft on the Switch is practically unplayable in this current state.