I would like to downgrade my modded Minecraft world from 1.16.5 to 1.16.2 and maybe later transfer it to 1.12.2 and then to a Nitrado server.
Can I just do this by opening it with a lower version or will there be problems?
No that doesn't work.
There will be problems
Yes, it will reset the world. It shouldn't be a problem between the 1.16.x versions.
Isn't it usually just removed all content from the newer versions? If you remove mods, it works like this
The problem is that the world generator in version 1.12 was different than in version 1.16.
The world is not being regenerated
Since the world generator is an older one, the world is regenerated.