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ok i am gonne close this forum and i am gonne stop modding minecraft because i am just garbage at java

This is what I believe happens as well. Each chunk may (or may not!) be on its own thread, so you can't reach out too far. I think/hope/assume that the +X/+Z chunks are accessible, due to how vanilla has always handled generation across chunk boundaries before, but I haven't had the time to actually find out. Its possible that there's some precompute (eg. structures) with the structure part bounding boxes and vanilla goes "ok, cool, you want to generate in this volume, that'd be this list of chunks...pooling chunks together...spawning thread...here you go, do what you need."