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Edit: This might actually be a Terrestria issue; the Lush Desert is incorrectly set to the "Ocean" category so it's quite possible the Taiga Island was trying to generate in an actual ocean... which just happened to be made entirely of sand. Closing the issue for now, will re-open if I encounter more examples once Terrestria is fixed.

I had hoped the two would be compatible since Overworld Two is basically the same as Vanilla's generation, but it seems the two aren't. There are definitely larger lakes than normal (though not massive) but Lakeside "Island" biomes are just generating wherever they please it seems. I found a Taiga Island biome right next to a Lush Desert from Terrestria, and it certainly wasn't an island. It's not the "biome shifting" issue since I've not changed biome mods, am using a version of Fabric where that isn't an issue anymore, and the worldgen in the area was definitely Taiga anyway.

Xaero's World Map view of the area:

I found this weird generation artifact

World seed: 580278049552005197
XYZ ~ 101, 120, -123
Overworld modifying mods were Lakeside 1.0.3, Terrestria 2.1.5, and RiverRedux 0.1.5.
Cave Biomes was also included, but I don't think that one messes with actual biome generation.

Hate to be that guy, but this is one of my fav mods for fabric packs, seeing as you've blessed us with a port for adorn was wondering if there's any chance we'll get this mod for forge packs