Having dh on my local server causing server to lag

Hello! So right now im running mc 1.20.1 forge with DistantHorizons-forge-2.3.1-b-dev-1.20.1 version.
While distant generation on server side is enabled it causing my server to lag (ticks stop and then speed up) because of latency i guess. Server is constantly throwing these messages: Can't keep up! Is the server overloaded? Running 2881ms or 57 ticks behind
Fix is to disable distant generation on server side. At the same time DH works as intended chunks are generated and we (players) get them without any problem. Right now i'm not posting logs because im not sure which logs will help.
Also i wanna notice something very important. Lately i was using old nightlybuild DistantHorizons-forge-2.1.3-a-dev-1.20.1 that was working flawlessly on my server without any stutters. Should i try to use this version on serverside again? Any steps you would recommend me to proceed?
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