When a horse/donkey/mule is spawned on the ground beside an escarpment, the mob floats above ground, like Screenshot 1.
Additionally, when the affected mob is hit from the opposite side of the escarpment, it goes into blocks like Screenshot 2 and cannot move.
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But I believe the resolution is mis-decided because apparently spawning a mob floating above and doesn't drop off to the ground immediately isn't normal. It should be fixed.
You're voluntarily spawning the horse inside the block. Nothing wrong here.