Raycasts for PlayerInteractEvent in PlayerConnection.java should account for new Minecraft reach attributes, both entity and block.
I'm running into the issue that PlayerInteractEvent fires after EntityDamageByEntityEvent whenever I give an item an interact reach modifier. If you attack an entity OUTSIDE of the vanilla reach range, PlayerInteractEvent will still fire.

https://hub.spigotmc.org/stash/projects/SPIGOT/repos/craftbukkit/browse/nms-patches/net/minecraft/server/network/PlayerConnection.patch#722
https://hub.spigotmc.org/stash/projects/SPIGOT/repos/craftbukkit/browse/nms-patches/net/minecraft/server/network/PlayerConnection.patch#1126

I don't think this is as simple as changing the ternary to {{this.player.blockInteractionRange()
}}
For example, a players block interaction range can still be shorter than the players attack interaction range. The raycast needs to account for the longer attribute when checking the logic, but still get the block from the players blockInteractionRange.