That exact finish was used in the very first Women's Tour, in 2014, and although it was sketchy, everybody got through fine. It was bright sunshine I think, however, and also it was stage 5 so the péloton was smaller and several riders not in contention were not contesting the sprint. Plus with the suspension of racing, everybody got a break to recuperate and recharge the batteries turning it into a high pace 35km shootout, so fewer riders were likely to be tailed off either. Plus, of course, in just 8 years the professionalism of the women's péloton has improved greatly - but at the same time, people like Emma Johansson and Marianne Vos sprinting are likely to be a lot safer than the likes of Wiebes on a technical finish.
In 2016 they had stage 1 finish in Norwich with a finish pretty similar to this if I remember rightly - there was a pinchpoint as they moved from wide open multi-lane tarmac to a cobbled one-lane city centre street at just over 1km to go, and then there was a 90º right and a 90º left within the last 200m, and as the breakaway wasn't caught until the last kilometre, motos and cars were still caught in the gap as there was nowhere to get out of the péloton's way, and it resulted in complete carnage with crashes and splits created by vehicles being in the way and was just a mess that they just annulled all the time gaps from.
Certainly Bury St. Edmunds has better ways of setting up a finish, or maybe they need to set it somewhere else, although I know that as others have said, the tourist photos are usually of paramount importance so they wanted to have the finish outside the picturesque old town rather than on one of the more recent residential roads or an out-of-the-way connecting road. I get that. The other thing is that the race needs the stature to force some flattenings of traffic islands or removal of road furniture in some senses. The Tour of Britain and the Women's Tour both suffer from potentially hazardous finishes, as Britain seems to have an abundance of towns hosting races which are rife with as much road furniture as the Netherlands, but far fewer roads that are straight for long enough within cities, as roundabouts and chicanes seem to be constant. I thought they'd learned from that after the 2016 debacle, using the technical but not dangerous slightly uphill Kettering finish in 2017 (at least in the sprint for 2nd behind Niewiadoma), the seafront in Southwold in 2018 with very few corners late in the stage, and a much longer final straight in Stowmarket in 2019. But clearly not. The second intermediate sprint also seemed a bit sketchy with parked cars on the road inside the last kilometre before the actual sprint.
(Edit: also another problem might be that since the miscalculation in 2017, the péloton has resolutely prevented pretty much anything from happening in these East Anglian stages when they start the race there)
Part of the problem might just be the legacy of the poor use of terrain, though. Even in East Anglia, which has precious little to offer by way of obstacles, there are a few small hills that could be used to try to thin out the bunch and mean that you don't have quite so many riders coming to the line together. Bury St. Edmunds is clearly a supportive town for the sport and for the race. It hosted the men's Tour of Britain in 2010 and the Women's Tour in 2014 and 2015. The men's Tour also went through it in 2017 and the women's in 2019. Certainly it should be rewarded for its continued support. But there has to be a balance between what works for the councils and what works for the riders. If the council want their scenic finish in front of the old town gate and the abbey, then they need the course to be more selective to induce classics-style racing so that that finish can be done safely. Or, they have a safer sprint finish near to but not at their desired location similar to that proposed by Lemon Cheese Cake above, and then have the presentation at the site they want the pictures to show off, similar to how the Vuelta a Burgos runs its Ciudad Romana de Clunia finishes.
Otherwise, it might wind up being a stage racing version of the Scheldeprijs, coming before the Giro and the Tour, and struggle to attract the big GC names who don't want to risk being injured before those bigger events. I mean, going off the current CQ ranking, only 3 of the current top 10 - Wiebes, Reusser and Longo Borghini - are in attendance, and while it's 7 of the top 15 (Chabbey, Moolman-Pasio, van Dijk and Niewiadoma being the others), there's only Grace Brown between 16 and 25 in the rankings).