That is not going to be good for the bottom block (still pretty much a solid cube). The simple way to get that is:
private static final VoxelShape INSIDE = makeCuboidShape(2.0D, 2.0D, 0.0D, 14.0D, 16.0D, 14.0D);
protected static final VoxelShape SHAPE = VoxelShapes.combineAndSimplify(
VoxelShapes.fullCube(),
INSIDE,
IBooleanFunction.ONLY_FIRST);
Your shape is strange, but the top is solid, so you need to open it and make it a little wider so you can fit into. Make the 4th and 5th parameters for INSIDE 14.0D (make wider) and 16.0D (make hole in top). It still is a strange shape.
It says it is running Java 16. You are probably using the newer Eclipse which comes with 16. You need to change setting to point to one of the other versions of Java.
Go to Preferences and check you have compiler compliance level set to 1.8, then check/fix Installed JREs and Execution Environment settings.
Not sure if they are documented somewhere, but I found these in ObjLoader#read
You can find other loaders in ModelLoaderRegistry#init, then follow to their read method for their options.
you should just apply damage to the current stack instead of creating a new stack (at least the way you are doing it) because you will lose other settings, like enchantments