I don't know bug it is or not, but it's kinda wrong. Mobs can dissapear with your stuff on them, when you change to peaceful. Not tested in survival. On screenshots I give skeleton armor and sword, and change to peaceful, than he just "poof" with all that stuff and I can't have it back... Need to test are they disappear with items when far enough.
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Ypu, it's easy solution, by the way, I'm still intersted are they gonna disappear with stuff on far distances.
A mob that picks up loot never despawns regardless of distance. Changing to peaceful duplicate of MC-5009.
intended, peacefull deletes all the mobs, that's why they call it peacefull. there is one very easy resolution, don't turn to peacufull 🙂