I experimented with shaders, didn't like anything, so I disabled them and bam. I get these LODs. Moreover, when I connect to the server, I see normal LODs for a moment, after which the quality drops.
On the server, the draw distance is 4, on the client, it's 32. The DH settings are maxed out. I disabled Sodium, Iris, and LambDynamicLights entirely, and switched from MultiMC to PrismLauncher. DH version on the server and client is 2.4.5-b, fabric, 1.21.11.
Errors
[14:49:02] [Render thread/ERROR]: Couldn't load distanthorizons pack metadata: Pack declares support for version newer than 64, but is missing mandatory fields min_format and max_format
[14:49:02] [Render thread/ERROR]: Couldn't load distanthorizons pack metadata: Pack declares support for version newer than 64, but is missing mandatory fields min_format and max_format