TL;DR I beat all the branches, except Survival. I did all the items in Survival, but can't do the black stained glass. Squid simply aren't spawning, even though all aggressive mobs are spawning just fine.
Yes, my render distance is at 20. It is good to hear that it should reset. I will give it another poke. Same goes for the squid issue. Thank you for responding. Will report back.
Edit: Put all my stuff in a chest, exited Survival, switched to Adventure. Still isn't reset. Is there a way to fully reset that branch? Returned to Survival, did several laps around the survival waters in a boat, still nothing.
Edit 2: Went and beat Escape. Evil Pharaoh Steve was hilarious, nice Came back to Survival, did a few more laps in my boat, still no squids. Went back to Adventure, still not reset
Edit 3: Good news is, I was still able to complete the Adventure section even without the items I had lost by going back to the hub. So that turned out okay. That said, there should be a way to reset a branch like Adventure or Survival, where the changed state is saved even if you exit the section. Ah well. Still, can't complete the Survival branch without that squid, and still no luck getting a squid to spawn...
Edit 4: Beat all the branches, revisited Survival a few times now, waited around, rode around in my boat, no squids spawning at all.
Are other animals spawning?
No, there is no full reset for the Survival Branch.