Congratulations to Ben and Dylan and the US and NZ crews for your years of hard work!! Fingers crossed!
https://twitter.com/officialavatar/status/1617882378617393158
And a few more! (I mean VFX feels like a no brainer!) Congratulations to all of the incredibly hard working teams!! 
For the uninitiated, "Best Production Design" roughly translates to "Best Art Direction" for film. So if you liked the visual design of the sets, landscapes, vehicles, and in this case creatures for #AvatarTheWayOfWater this would be the category.
As well as all of the physical builds of said sets, etc. (Not costumes though, costume design is its own category).
I think on a film like this, to some, production design might easily be conflated with visual effects, which is the visual execution of the final CG elements onscreen (also absolutely stellar in #AvatarTheWayOfWater, IMO).
So again, a gigantic congratulations to @BProcterDesign and @DylanColeArt, and all of the US and NZ art teams (especially my Lightstorm art department family) on #avatarthewayofwater for your @TheAcademy nomination!! Could not be more well deserved!
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