I did a full wipe of the game. Delete the files in %appdata% and the main installation directory. Reinstalled, and so far, I am spawning on the ground like normal. I think the issue may have been a very old version of the game I had installed from a year or two ago.
I'm on the latest version and it happens in vanilla for me, as well as with mods. The initial spawn for both players is on the ground, but when we die, we respawn a hundred tiles in the air.
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