Can PostgreSQL bulk update cause issue in Logical replication?

I use AWS Aurora PostgreSQL. PS version:13(updated the question) We use Logical slots(wal2json) to replicate to the data warehouse. Recently one of the Bulk updates queries updated 40 million rows. After that, my cluster's IOPS went too high and the queue depth went to 80. All the operations got blocked. Then we removed the replication slots, and everything back to normal. I know the bulk update should have been done in batches. Just trying to understand if is this a bottleneck in logical replication. how do we handle such use cases in the future? Can pgoutput makes sense here?