In this setup (Shulker box-lava-sign-watter) stand the player in lava and opens the shulker box right under him. The Shulker box does move him upwards. The player gets the Water texture on his screen but he is still burning. You also get the lava texture, but you don't burn, if you switch water and lava
Probably intended. The same happens as well when you are standing in lava and water at the same time, for example if they are diagonally offset.