Oddly enough, I also don't get this issue doing the reverse; a headless client on linux connecting to a dedicated server on windows.

Maybe it's a problem with isolation? I'm curious what will happen with a linux everything on two different machines, virtual machines/containers, or different users on the same machine?

I tried with the arma 3 server running in a docker container and the headless client on the host and the headless client still froze up. I don't have the resources to try running each on separate linux machines. But that isn't really a viable workaround anyway, and neither is using visualization as you pointed out.

This issue doesn't occur when testing a headless client on windows connecting to a dedicated server on linux.

I get this issue as well on 1.54. It might happen only after connecting to a server with a mission running or when starting a mission. Happens for me on both Linux and Windows servers and headless clients.

Also it seems to be mostly harmless as everything else continues to work normally.

40mm grenades also seem to be similarly affected.