The outlines of the blocks are missing when looking at them. Looking back at older screenshots, this was also in the previous snapshot. I noticed whilst building. I looked for duplicates but couldn't find any, so if this is a duplicate, my apologies, I didn't see. If this is intended, please re-enable them.
Screenshots below.
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works as intended. this (block outlines underwater) has never been a thing. neither in version prior to 1.12, nor in 1.13 snapshots

No. Who says that this is intended? It's actually MC-9553

Gee, that's an old bug. I can understand someone thought it was intended since it's been in the game since 2013 apparently XD. Well, at least I learned something new today 🙂

It is definitely a bug because when the player is in air and looks at a block in water, there is an outline. But when the player is in water and looks at the same block, there is no outline. The water screen effect overwrites the block outline effect.