I have a similar issue in LAN worlds (Fabric 1.21.1 too).
What I've noticed is that movement of knocked out players does not register server side, only client side.
So, for example, if you were to die mid air, your body stays in the air for other players, but the actual knocked out player falls to the ground as normal.
(I've tested this exact scenario with 2 MC instances with Harcore Revival + Dependencies only):
Originally posted by @7bbbbbbb in #196
Originally posted by @7bbbbbbb in #196