Even though I expect you have installed Java 17 on your system the game is still beign ran with Java 8. Do note that the Minecraft launcher will now not allow you to use Java 16/17 with Minecraft 1.16 ...
crash] Amidst has encounted an uncaught exception on the thread Thread[WorkerExecutor-1,1,main] [crash] java.lang.UnsupportedClassVersionError: net/minecraft/server ...
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