Hey @zelus_pudding, thanks for the question! We had internal discussions about whether to run the Plugin API v4 on Node 16 versus a more modern version than 16. We decided to go with Node 16 since we know that migration to the v4 API is going to require changes for plugins that have server-side actions, so we wanted to introduce a “minimally-breaking” update in v4 to make migration as easy as possible.
The transition from running server side actions on Node 16 to Node 18 is not expected to be nearly as breaking, so when we make this update (this is on our roadmap!) we may not need to rely on a plugin API version to do this.