//remove show_in_rest from. argument then this will work
$args = array(
'hierarchical' => true,
'labels' => $labels,
'show_ui' => true,
'show_admin_column' => true,
'query_var' => true,
'rewrite' => array( 'slug' => 'genre' ),
'show_in_rest' => true, //remove
'rest_base' => 'genre',// remove
'rest_controller_class' => 'WP_REST_Terms_Controller',//remove
);
register_taxonomy( 'genre', array( 'book' ), $args );