I've recently encountered blatant cheaters on public servers. My friends and I switched to a community server with the hopes of:

I had a similar issue after updating to 1.16. The game crashed when I got to a certain location, and after that it crashed every time it finished loading again.

I've experienced the same thing a few times in the last few days on official servers. My understanding is that the only anti-cheat measures in DayZ are client-side cheat detection (BattlEye) and active server administration. There are no administrators on official servers, and no redress when cheat programs bypass BattlEye.

Is the severity of "None" intentional? This inventory bug affects everyone.

You were almost certainly killed by someone using cheat software. I've had the same experience a few times recently on public servers, and so have moved to community ones which have active administrators.

This issue persists through 1.16 on official servers.