For anyone interested, after contacting customer support at maxon, their solution was to scale up the scene 1000x and enable camera space render. This essentially just makes the black line smaller at the cost of having an incorrect scene scale.
unfortunately this makes a desktop pc asset 2KM long and makes working with the scene difficult..
The black line is also still visible but much smaller, with SSS enabled it goes back to how it was before(not good).
I have a project file here with the "fixed" version and the original version and for some reason, the water plane in the fixed version behaves differently in renders than the one in the original. they both have the same shader applied with identical geometry and are visibly the same scale (maybe im missing something regarding how scaling works in C4D) but one renders a black line and one doesn't. When I asked for more advice on why this is happening, CS agent said "can u not just use the fixed one". So, in the end, no clarity around why this is happening. I guess using camera space render is advisable when working with large scale scenes but this workaround of scaling the scene only pushes the issue under the rug and Id prefer to work in real world scale but i guess that's not possible.
Also, somehow the project file is 100 MB, i have no idea how because I deleted everything that is not relevant to the issue and there are no image textures or HDRIs so Ive put the project file into a google drive here: https://drive.google.com/file/d/1phQZn6zwNl-nzraxBqhx8D9N0xsgA5L4/view?usp=sharing