The problem happens with both the stars and sun/moon, it looks bad and I am not sure exactly what causes it, I played around with Embeddium settings a little but still the problem occurs, I am playing with 16 render distance so that can't be it, I use a fog mod but I checked the game without it and the problem still occurs. Below is the list of mods.
.connector (.connector)
AdvancedLootInfo [1.7.3] (AdvancedLootInfo-forge-1.20.1-1.7.3.jar)
Aetherial Islands [2.0.2] (aetherial-islands-2.0.2.jar)
AppleSkin [2.5.1+mc1.20.1] (appleskin-forge-mc1.20.1-2.5.1.jar)
Architectury [9.2.14] (architectury-9.2.14-forge.jar)
BCLib [20.0.6] (BCLib-20.0.6.jar)
Backported Spears [1.4.6] (spear-backport-forge-1.4.6-1.20.1.jar)
Balm [7.3.38] (balm-forge-1.20.1-7.3.38-all.jar)
Chloride [1.7.5] (chloride-FORGE-mc1.20.1-v1.7.5.jar)
Chunks Fade In [3.0.20-1.20] (chunksfadein-forge-3.0.20-1.20.jar)
Clear Void [1.3.0] (clearvoid-forge-1.3.0.jar)
CloudSettings [2.0.0.7] (CloudSettings-1.20.X-2.0.0.7-forge.jar)
Configured [2.2.3] (configured-forge-1.20.1-2.2.3.jar)
Continuity [3.0.0+1.20.1.forge] (continuity-3.0.0+1.20.1.forge.jar)
Controlling [12.0.2] (Controlling-forge-1.20.1-12.0.2.jar)
Copper-Age-Backport [0.1.4] (copperagebackport-forge-1.20.1-0.1.4.jar)
Embeddium [0.3.31+mc1.20.1] (embeddium-0.3.31+mc1.20.1.jar)
Entity Model Features [3.0.12] (entity_model_features_1.20.1-forge-3.0.12.jar)
Entity Sound Features [0.7.1] (entity_sound_features_1.20.4-forge-0.7.1.jar)
Entity Texture Features [7.0.9] (entity_texture_features_1.20.1-forge-7.0.9.jar)
EntityCulling [1.9.5] (entityculling-forge-1.9.5-mc1.20.1.jar)
Fast Suite [5.1.2] (FastSuite-1.20.1-5.1.2.jar)
Ferrite Core [6.0.1] (ferritecore-6.0.1-forge.jar)
FindMe [3.2.3] (findme-3.2.3-forge.jar)
Fog [1.5.3-1.20.1] (Fog-forge-1.5.3-1.20.1.jar)
Forgified Fabric API [0.92.6+1.11.14+1.20.1] (fabric-api-0.92.6+1.11.14+1.20.1.jar)
From The Fog [1.9.2] (From-The-Fog-1.20-v1.9.2-Forge-Fabric.jar)
GeckoLib 4 [4.8.3] (geckolib-forge-1.20.1-4.8.3.jar)
ImmediatelyFast [1.5.4+1.20.4] (ImmediatelyFast-Forge-1.5.4+1.20.4.jar)
Immersive Damage Indicators [1.0.0] (immersivedamageindicators-forge-1.0.0-1.20.1.jar)
Immersive Messages API [1.0.18] (immersivemessages-forge-1.0.18-1.20.1.jar)
Inventory Essentials [8.2.14] (inventoryessentials-forge-1.20.1-8.2.14.jar)
Item Zoom [2.9.0] (itemzoom-1.20.1-2.9.0.jar)
Jade [11.13.2+forge] (Jade-1.20.1-Forge-11.13.2.jar)
Just Coordinates [0.2.0] (justcoordinates-0.2.0+1.20.1-forge.jar)
Just Enough Items [15.20.0.129] (jei-1.20.1-forge-15.20.0.129.jar)
Lithostitched [1.4.11] (lithostitched-forge-1.20.1-1.4.11.jar)
Macaw's Bridges [3.1.2] (mcw-bridges-3.1.2-mc1.20.1forge.jar)
Mineblock's Repeated Utilities [1.0.4+1.20.1+forge] (MRU-1.0.4+1.20.1+forge.jar)
ModernFix [5.26.2+mc1.20.1] (modernfix-forge-5.26.2+mc1.20.1.jar)
MoogsMissingVillages [2.0.0] (MoogsMissingVillages-1.20-2.0.0.jar)
Mouse Tweaks [2.25.1] (MouseTweaks-forge-mc1.20.1-2.25.1.jar)
Oculus [1.8.0] (oculus-mc1.20.1-1.8.0.jar)
Paper Doll [8.0.0] (PaperDoll-v8.0.0-1.20.1-Forge.jar)
Placebo [8.6.3] (Placebo-1.20.1-8.6.3.jar)
Platform [1.2.11.6.2] (Platform-forge-1.20.1-1.2.11.6.2.jar)
Polytone [1.20-3.5.22] (polytone-1.20-3.5.22.jar)
Pro Placer [8.0.3] (ProPlacer-v8.0.3-1.20.1-Forge.jar)
Puzzles Lib [8.1.33] (PuzzlesLib-v8.1.33-1.20.1-Forge.jar)
QuickStack [1.20.1-1] (quickstack-1.20.1-1.jar)
Radium [0.12.4+git.26c9d8e] (radium-mc1.20.1-0.12.4+git.26c9d8e.jar)
Remove Reloading Screen [4.0.6.1+mc1.20.1-forge] (rrls-4.0.6.1+mc1.20.1-forge.jar)
Searchables [1.0.3] (Searchables-forge-1.20.1-1.0.3.jar)
Separated Leaves [2.6.0] (separatedleaves-2.6.0-forge-1.20.4.jar)
Simple Backups [1.20.1-3.1.24] (SimpleBackups-1.20.1-3.1.24.jar)
Sinytra Connector [7594389] (Connector-1.0.0-beta.48+1.20.1.jar)
Sodium Dynamic Lights [1.0.9] (sodiumdynamiclights-forge-1.0.10-1.20.1.jar)
Sodium Extras [1.0.6] (sodiumextras-forge-1.0.7-1.20.1.jar)
Sodium Options API [1.0.10] (sodiumoptionsapi-forge-1.0.10-1.20.1.jar)
Sodium Options Mod Compat [1.0.0] (sodiumoptionsmodcompat-forge-1.0.0-1.20.1.jar)
Sound Physics Remastered [1.20.1-1.5.1] (sound-physics-remastered-forge-1.20.1-1.5.1.jar)
Sounds [2.2.1+1.20.1+forge] (Sounds-2.2.1+1.20.1+forge.jar)
TorchPlacer [1.0.1] (torchplacer-1.0.1-forge-1.20.1.jar)
Trials Chambers [2.3.4] (Trials-Final.jar)
TxniLib [1.0.24] (txnilib-forge-1.0.24-1.20.1.jar)
Unlocked recipe book [1.0.0] (unlocked_recipe_book-1.20.1-1.0.0.jar)
VanillaBackport [1.1.5.4.2] (VanillaBackport-forge-1.20.1-1.1.5.4.2.jar)
WunderLib [20.0.1] (WunderLib-20.0.1.jar)
YetAnotherConfigLib [3.6.6+1.20.1-forge] (yet_another_config_lib_v3-3.6.6+1.20.1-forge.jar)
by PolskiGrizzle