I loaded up a random seed, and spawned on a taiga island. I was about to take a dip in the ocean, but saw a group of wolves attacking some sheep.
This isn't out of the ordinary, but there wasn't something right, I didn't see any sheep around me! The wolves successfully killed the "sheep," and they dropped a block of wool and some mutton as they should. However I couldn't see the sheep as if they were invisible.
I tried wandering and punching to see if I could interact with any sheep that may be near by, but to no avail, so it's possible that this issue also rendered players unable to touch them. I also restarted the game to see if it could be a rendering issue of some sort, still didn't fix the problem.
This was my first time using 1.13, and the seed was "-4688105619867212766."
The attached file shows a screenshot of the items the sheep dropped, and the video clip (link: Minecraft 1.13 Invisible Sheep Bug) is footage of me loading up another world with the same seed. The footage shows that sheep are present by their baaa-ing, and me attempting to interact with them. You can also see the wolves killing the invisible sheep.
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After further exploration, I discovered that this issue only targeted SOME sheep. Sheep near the spawn point were targeted while sheep located on a farther side of the island weren't and behave perfectly fine.
Thank you for your report!
However, this issue is a Duplicate of MC-65040.
If you have additional information, please add it to that report.
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Another thing, mob's movement in general seem to stutter.