Simply put, if you attack a leash on to a fence and break the fence, the leash coil will still remain intact, floating in the air.
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I cannot reproduce this.
Added a screenshot. I would say this is a minor visual annoyance.
To reproduce, you need to break the bottom part of the leashed fence, not the top part.
The entity doesn't have enough time to realize that it isn't attached. Confirmed but the description should be changed for "doesn't remove the leash for 3-4 seconds.
Can confirm that this is still an issue in 20w51a.
Can confirm in 1.18.2.
Can confirm in 1.19.
Can confirm in 1.19.2.

Can confirm in 1.20.3 rc-1

Still not fixed in 25w16a
I can reproduce this, but the floating leash will drop as a resource in 3 to 4 seconds, perhaps there is code which check for the situation but just not getting triggered in time.