So here's how I would think about it intuitively:

We can create a balanced partitioning of the 300 turkeys with a 300 bit random number having an equal number of 1's and 0's.

Now suppose I randomly pick 300 bit number, still with equal 0's and 1's, but this time the first 20 bits are always 0's and the last 20 bits are always 1's. In this scenario, only the middle 260 bits (turkeys) are randomly assigned, and the remaining 40 are deterministic.

We can quibble over what constitutes an "enormous" bias, but the scenario above feels like an inadequate experiment design to me.

As it happens, log2(260 choose 130) ~= 256.

> Are there any non-cryptographic examples in which a well-designed PRNG with 256 bits of well-seeded random state produces results different enough from a TRNG to be visible to a user?

One example that comes to mind is shuffling a deck of playing cards. You need approximately 225 bits of entropy to ensure that every possible 52 card ordering can be represented. Suppose you wanted to simulate a game of blackjack with more than one deck or some other card game with more than 58 cards. 256 bits is not enough there.

MCMC can be difficult for this reason. There are concepts like "k-dimensional equidistribution" etc. etc... where in some ways the requirements of a PRNG are far, far, higher than a cryptographically sound PRNG, but also in many ways less so, because you don't care about adversarial issues, and would prefer speed.

If you can't generate all possible assignments, you care about second and third order properties etc. of the sequence.

The argument against PRNGs this paper makes isn't that the PRNG produces results that can be distinguished from TRNG, but that the 256-bit seed deterministically chooses a single shuffling. If you need 300 bits to truly shuffle the assignment but you only have 256 bits, then that's a lot of potential assignments that can never actually happen. With this argument it doesn't matter what the PRNG is, the fact that it's deterministic is all that matters. And this invalidates the p-value because the p-value assumes that all possible assignments are equiprobable, when in fact a lot of possible assignments have a probability of zero.

I imagine you could change the p-value test to randomly sample assignments generated via the exact same process that was used to generate the assignment used by the experiment, and as you run more and more iterations of this the calculated p-value should converge to the correct value, but then the question becomes is the p-value calculated this way the same as the p-value you'd get if you actually went ahead and used equiprobable assignment to begin with?

Ultimately, this all comes down to the fact that it's not hard to use true randomness for the whole thing, and true randomness produces statistically valid results, if you use true randomness for assignment then you can't screw up the p-value test, and so there's no reason at all to even consider how to safely use a PRNG here, all that does is open the door to messing up.