I can also confirm that this still appears to be an issue when trying to set up a new world using the dedicated server prompt (which is the only way I can get a large world to generator without crashing from a lack of memory).
It stops here (gave it half an hour to run without it moving at all, using a full CPU core the whole time):
"29.1% - Assessing overgrowth - 0.0%"
It happens when it is the only mod, as expected, but just to confirm that as well.
If you cannot toss in a way to make the choice during the dedicated server new world creation could we get a config option for the default answer, or maybe just have it default to "no"?
Thank you!
Edit: After deciding to check out what happens when you do generate a world with that option, I've changed the default "yes" to default "no" given how drastic of a change it makes.