It doesn't complain about the non-limited selector, it doesn't teleport me to the entity if the selector happens to resolve to exactly one entity, and it doesn't complain if the selector doesn't resolve to any entities.
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Can confirm in 21w07a. Here's some steps to reproduce this issue:
Steps to Reproduce:
Run the following commands:
/tp @e[type=sheep]
/tp @e[type=pig]
/tp @e[type=cow]
→ ❌ Notice how all of these commands do absolutely nothing.
This is actually a duplicate of MC-256419.
In 1.16.1 and 20w29a